IRAs
Invest in your future today with an Individual Retirement Account (IRA) from Central Credit Union Of Illinois.
Have the retirement you have always dreamed about. Start planning today with an IRA.
- Open traditional or Roth IRAs or Coverdell Education Savings Accounts
- Choose from variable-rate money market or fixed-rate certificate options
- Earn high returns
- Easily roll over your 401k
- Feel secure knowing your deposits are federally insured
What is an IRA?
An IRA is a personal tax-sheltered savings plan, usually set up by an individual to provide for his or her retirement. Contributions to IRAs can be tax-deductible and, in some cases, earnings grow tax-free depending on which type of IRA you choose.
If you have earned income or receive alimony, you can contribute to an IRA. Income from other sources such as investment or inheritance does not qualify. If you have a working or non-working spouse and you file a joint return, he or she can open a separate IRA and make contributions up to the allowable annual limit. There is no minimum age for opening an IRA.
You can open or contribute to an IRA for a given year up until the due date for that year’s tax return (usually April 15th).
There are two types of IRAs – traditional and Roth IRAs. The IRA that’s best for you may depend on your annual income and whether you’re seeking a tax deduction or tax-free earnings.
| Account Details |
Traditional IRAs (2022 Tax Year) |
Roth IRAs (2022 Tax Year) |
|---|---|---|
| Maximum Contribution |
Under Age 50: $6,000 annually or 100% of compensation, 50 and older: $7,000 annually or 100% of compensation, whichever is less |
Under Age 50: $6,000 annually or 100% of compensation, 50 and older: $7,000 annually or 100% of compensation, |
| Income Restrictions | None | Singles can contribute the full $6,000 or $7,000 if applicable Modified Adjusted Gross Income (MAGI) is less than $129,000. Contributions phase out as MAGI reaches $144,000. MAGI income limits run from $204,000-$214,000 for married couples filing jointly. |
| Amount Deductible | If you or your spouse is an active participant in an employer-sponsored retirement plan, the extent that your contributions are deductible depends on your Modified Adjusted Gross Income and tax filing status as follows: Full deduction for singles earning under $68,000 and married couples filing jointly earning under $109,000. Graduated deduction for singles earning $68,000-$78,000 and married couples earning $109,000-$129,000. No deduction for singles earning over $78,000 and married couples earning over $129,000. | None |
| Earnings Taxed | Yes, upon withdrawal | Earnings grow tax free provided certain requirements are met |
| Withdrawal Penalties | None as long as... - You are over age 59 1/2 or - You become disabled or - You die, and funds are paid to your beneficiary or - Funds are used for a first home purchase ($10,000 lifetime limit) or - Funds used to pay qualified medical expenses exceeding 10% of income or - Funds used to pay health insurance premiums while unemployed or - Funds used to pay qualified higher education expenses. |
None as long as... - You are over age 59 1/2 or - You become disabled or - You die, and funds are paid to your beneficiary or - Funds are used for a first home purchase ($10,000 lifetime limit) |
Contribution limits are accurate for 2022 contribution year. Total applies for traditional and Roth IRAs combined. For more detailed answers to legal or technical questions, please contact your attorney and/or CPA.
We have many different investment options for IRAs to meet your needs.
| Account Details | Market Rate IRAs | Smart-Saver IRAs | Investor's Choice IRAs | IRA Certificates |
|---|---|---|---|---|
| Rates |
0.15 % |
2.23 % |
3.44 % |
6 Month: 2.47 %
12 Month: 3.20 %
30 Month: 2.47 %
60 Month: 2.47 %
|
| Dividends | Compounded daily and paid monthly | Compounded daily and paid monthly | Compounded daily and paid monthly | Compounded daily and paid monthly |
| Minimum Balance Required | No minimum balance required | $10,000 | $25,000 | $1,000 |
| Additional Deposits | Allowed any time, up to your maximum yearly contribution | Allowed any time, up to your maximum yearly contribution | Allowed any time, up to your maximum yearly contribution | None |
| Available As A Traditional Or Roth IRA | Yes | Yes | Yes | Yes |
| Available As A Coverdell Education Savings Account | Yes | No | No | Yes |
Additional Options And Features
If you’re changing jobs or retiring, our knowledgeable staff can guide you through the process of rolling over your retirement plan funds and will assist you in selecting an investment that will help you achieve your financial goals.
These accounts allow you to save for a child’s education expenses by investing up to $2,000 per year per child under age 18.
The amount you may contribute depends on your income as follows:
- Singles can contribute the full $2,000 if income is less than $95,000.
- Contributions for singles phase out as income reaches $110,000
- Income limits run from $190,000 to $220,000 for married couples filing jointly
Contributions can also be made by estates, trusts, businesses and other non-person entities without income limitations. However, contributions from all sources cannot exceed $2,000 per year per beneficiary.
Contributions aren’t tax deductible. However, earnings grow tax free, and you pay no taxes or penalties on money withdrawn to pay for qualified elementary, secondary or post-secondary education expenses including tuition, room and board and other fees before the beneficiary reaches age 30.
You can contribute to a Coverdell Education Savings Account for a given year up to the due date for that year’s tax return (usually April 15th). In the year in which the beneficiary turns 18, contributions must be made prior to his or her 18th birthday.
Contributions for beneficiaries over age 18 may be allowed for beneficiaries with special needs. These qualified individuals may also withdraw funds for qualified education expenses after age 30.
Saving is simple with direct deposit. Automatically deposit all or a portion of each paycheck into your Share Savings Account, and then schedule automatic transfers in online banking or mobile banking to make regular contributions to your IRA. To sign up, complete a Direct Deposit Information And Authorization Form, and return it to your employer. Please also complete any additional forms required by your employer to begin this process.
Click here to take a look with our retirement shortfall calculator.
Use our free online banking or mobile banking to conveniently manage your money. With either, you can check balances, verify deposits, transfer funds and more. With mobile banking, you can also deposit checks remotely using your mobile device.
Your savings are federally insured by the National Credit Union Administration, a U.S. Government agency.