Traditional IRAs

An Individual Retirement Account (IRA) is a long-term savings program designed to encourage retirement saving by individual taxpayers that may be tax deductible. Make sure to check with your tax adviser to decide on the best IRA investment option for you.

How does a Traditional IRA work?

We offer a variety of dividend rates and terms. Choose the IRA daily account – you can add to your account at any time (up to IRS maximums), or choose a 12, 24, 36, 48, or 60-month certificate to earn a fixed dividend rate.

You are eligible to contribute to a Traditional IRA as long as you (or your spouse if filing a joint tax return) earn compensation from employment.

Required Minimum Distribution starts at age 73.

Roth IRAs

A Roth IRA is an individual retirement account named for the late Senate Finance Committee Chairman William Roth, Jr. This type of IRA offers different tax incentives than a Traditional IRA to boost your retirement savings.

How does a Roth IRA work?

Unlike Traditional IRAs, contributions to a Roth IRA are never tax-deductible. But the money in your Roth IRA can be withdrawn tax-free at any time. And if you qualify, you can withdraw the earnings tax-free too. The money contributed has already been taxed. So, the principal amount is not subject to taxes or penalties in the future as long as you stay within the contribution guidelines.

Choose the Roth IRA daily account – you can add to your account at any time (up to IRS maximums) or choose a 12, 24, 36, 48, or 60-month certificate to earn a fixed dividend rate.

No distribution requirements.

Frequently Asked Questions

Have more questions about how Traditional IRAs and Roth IRAs work and what you can do with them? Look at our Frequently Asked Questions page to learn more.

Coverdell

A Coverdell Education Savings Account (CESA) allows you to make nondeductible contributions on behalf of a child each year until the child reaches the age of 18. The earnings generated on the CESA contributions remain tax deferred while held in the CESA. Then, when a child uses CESA assets to pay for qualified education expenses, the contributions and the earnings are distributed tax-free.

Unique Advantages 

  • Earnings are tax-free if used to pay for education expenses before the beneficiary reaches age 30 or later for a special needs beneficiary.

  • Earnings used for any other purpose are taxable to the designated beneficiary.

  • It encourages a regular savings program for a child’s education.

Contributions

Anyone can fund a child’s CESA as long as his or her modified adjusted gross income (MAGI) falls below or within the income limits for the year. Those who are eligible to contribute may give to more than one CESA on behalf of multiple children, not to exceed the annual contribution limit of $2,000 (or less, depending on (MAGI) per child). Likewise, any one child may not receive more than $2,000 total per year in CESA contributions.

Modified Adjusted Gross Income Limits
Single Filer: $95,000 - $110,000
Married, Joint Filer: $190,000 - $220,000

Nonqualified Distributions

  • If a child withdraws more from their CESA than the cost of their qualified education expenses for the year, a portion of the distribution is taxable. The child must include the earnings attributable to the excess distribution in their gross income for the year and pay a 10 percent penalty tax on the taxable earnings unless a penalty tax exception applies (e.g., death or disability).

  • If a child does not use the CESA assets or does not transfer or roll over the CESA assets to an eligible family member by the time they reach age 30*, the CESA is deemed distributed. The child must include the distributed amount in gross income for the year and pay a penalty tax on the earnings if the distribution is not used to pay for qualified education expenses.

    • *The age 18 and age 30 limits do not apply to special needs individuals.

Moving CESA Assets

  • Funds can be moved from one family member’s account to another. There is no limit on the number of transfers you may make, but rollovers must be completed within 60 days of the distribution and may only occur once in a 12-month period.

  • If you receive a military death benefit gratuity or a Service members’ Group Life Insurance payment, you may roll over the full amount without taxation to a CESA within one year of receipt.

Contact Us To Get Started

The Coverdell Education Savings Account (CESA) is designed solely to help pay education expenses. Qualified education expenses include tuition and fees, books, supplies and equipment, room and board, computers, and special needs services.

Health Savings Account

A Health Savings Account (HSA) can help you stay on top of rising healthcare costs and provide you with tax-deferred savings. With its various features and financial benefits, you’ll not only have protection against major healthcare costs but a potential reservoir of savings if you don’t need the HSA assets for medical expenses.

HSA Eligibility 

  • You must meet certain requirements to be eligible for an HSA; most importantly, you must be covered under a high-deductible health plan (HDHP). An HDHP generally has lower premiums than other types of health plans but also has higher deductibles. Until your deductible is met, you must pay for all your medical expenses – except for preventive care, which is almost always covered. Assuming your HDHP is HSA-compatible, you can use your HSA assets to pay for these expenses.

  • An HDHP is considered HSA-compatible if it satisfies the annual deductible and out-of-pocket expense limits. Check with your health insurance provider to see if your health plan meets these requirements.

  • Besides having coverage under an HDHP, to be eligible for an HSA, you

    • cannot be covered by another health plan (with limited exceptions),

    • cannot be enrolled in Medicare, and

    • cannot be eligible to be claimed as a dependent on another person’s tax return.

Funding your HSA

HSA contributions must be made by your tax return due date and generally are tax-deductible. The maximum amount you (and/or your employer) can contribute to your HSA each year depends on if you have self-only or family HDHP coverage. Also, if you attain age 55 before the close of a taxable year, your contribution limit increases by $1,000 for the annual catch-up contribution.

HSA Benefits

  • Savings tool with investment earnings.

  • Flexibility to pay current medical expenses or save for future needs.

  • Tax-deductible contributions.

  • Tax-deferred earnings.

  • Balance carries over from year to year.

  • Remains with you, regardless of change in coverage or employment.

Contact Us To Get Started

Health Savings Accounts are tax-favored consumer savings arrangements for individuals and families covered by high-deductible insurance plans. A Greater Community Credit Union HSA enables you to take control of your healthcare decisions. It offers you protection, affordability, savings, and flexibility.