IRA

Monroe Telco FCU offers a variety of IRA accounts that will help you in your financial planning for retirement or education of your children and grandchildren.

Traditional IRA

  • Grow your nest egg: Earnings and deductible contributions in a Traditional IRA grow tax-deferred until withdrawn, which can begin penalty free as early as age 59 1/2 but must begin at age 70 1/2
  • First home purchase: You can withdraw up to $10,000.00 penalty free towards the purchase of your first home
  • Pay for college: Traditional IRA funds used to pay for qualified educational expenses can be withdrawn penalty free. There is no dollar limit and funds can be used for tuition, fees, books and supplies at a post-secondary institution
  • Assist with medical expenses: Funds to pay for certain medical expenses can be withdrawn from your Traditional IRA without paying a 10% early distribution tax
  • Federally insured up to $250,000.00 by NCUA
  • You can deposit as little or as much as you want into your Traditional IRA each year up to the limit set by law.  The limit is the lesser of

*The annual contribution limit ($5500.00, plus a $1,000.00 catch-up contribution if you're age 50 or older) or 100% of your earned income.

Roth IRA

  • Preparing for retirement: Roth IRAs serve as a great retirement tool because qualified withdrawals, including earnings, are tax free.
  • First home purchase: If you've had your Roth IRA for at least five years, you can use $10,000.00 towards the purchase of your first home tax and penalty free.
  • Leave funds to your heirs: There are no mandatory withdrawals, so you can leave money from your Roth IRA to your heirs tax free.
  • Pay for college: Qualified educational expenses are penalty free. There is no dollar limit and funds can be used for tuition, fee, books and supplies at a post-secondary institution.
  • Rainy day fund: You can access your regular contributions tax free and penalty free at any time and for any reason.
  • If you have earned income within or below the current year's income rate, you are eligible to contribute to a Roth IRA
  • Federally insured up to $250,000.00 by NCUA

Coverdell ESA

  • While your contributions are made with after-tax dollars, the earnings and withdrawals are tax-free when used for qualified educational expenses.
  • You or any of your family members can contribute to the account, up to the $2000.00 total annual limit.
  • You can continue saving each year until your child reaches 18.
  • When the money is withdrawn, it can be applied to a broad range of qualified expenses for college and public or private K-12 education - including tuition, tutoring, room and board, and even computer equipment.
  • A unique Coverdell ESA feature is your ability to transfer funds from one child's account to another child's account in the same family
  • Federally insured up to $250,000.00 by NCUA