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MECU IRAs and IRA Rollovers
Save for your retirement while enjoying tax advantages.
Whether you’re establishing your first IRA or rolling over a 401(k) from a former employer, it’s very important to decide which type of IRA will work best for you. MECU IRAs are insured up to $250,000 by the National Credit Union Administration (NCUA), a U.S. government agency.
Here’s an overview of each:
| Traditional IRA | Roth IRA | Rollover IRA |
|---|
- Offers tax-deferred earnings
- Possibility of tax-deductible contributions
- Allows contributions up to age 70 ½ and requires distributions by age 70 ½
- Insurance up to $250,000 by the NCUA
|
- Offers tax-free distributions in retirement
- Does not require distributions (and can be passed along to heirs)
- Allows contributions as long as you have earned income
- Allows federal penalty-free withdrawals for qualified reasons (such as paying expenses for higher education)
- Contributions are not tax-deductible
- Insurance up to $250,000 by the NCUA
|
- Transfer funds directly from your employer to your MECU IRA
- Avoid mandatory 20% federal income tax withholding and keep earnings tax-deferred until they’re ready to be withdrawn
- Roll over from 401(k), 401(a), 403(b) and 457 plans
- Insurance up to $250,000 by the NCUA
|
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All MECU IRAs offer a choice of savings options:
An IRA market account offers you the option of adding contributions anytime you want (made even simpler with payroll deduction or automatic transfers from your checking account). An IRA certificate lets you make a lump sum deposit of $1,000 or more to open your account and lock in the rate for a specified term.