Individual Retirement Accounts
How prepared are you for retirement? One key piece in your retirement plan should be an IRA. Beacon Credit Union offers three IRA products to protect your savings for you and your family. Choose from a Traditional IRA, a Roth IRA, or an Education IRA.
Deposits up to $5,000 can be made each year for an individual, $6,000 if the member is over 50 years old, $10,000 for joint filers, and a non-working spouse can also contribute $5,000 per year. In-house penalty of 90 days dividend whether earned or not, if funds withdrawn for any reason before reaching age 59 1/2.
Contributions are not tax-deductible, but interest is tax-free. Special withdrawal conditions and features can make it more attractive than the Traditional IRA for some taxpayers.
Coverdell Education IRA
Maximum annual contribution of $2,000 per child, under age 18. Contributions are not tax deductible. Withdrawals are tax-free if taken for eligible higher education expenses. Prior year contributions not allowed - income limitations, time limitation on withdrawals, and certain penalties on remaining funds can occur.