It’s never too early or too late to start saving for retirement! Keep your retirement fund growing with an Individual Retirement Account (IRA).

When you save money in an IRA, your savings grows tax-free. That helps your savings compound more quickly than it would in a taxable account. MCT Credit Union offers IRA Savings Accounts and IRA Certificates for Traditional IRAs, Roth IRAs, and Coverdell Education Savings Accounts.

With a Traditional IRA, your retirement savings contributions are tax deductible based on your tax bracket and you’re allowed to make contributions up to a certain limit throughout your working life. The limit to annual contributions varies by year and is indexed to inflation. You pay taxes when you begin making withdrawals during retirement.

With a Roth IRA, your contributions are not tax deductible. You’re allowed to make contributions up to a certain limit throughout his/her working life. The limit to annual contributions varies by year according to inflation. A Roth IRA allows you to withdraw your earnings completely tax free any time after you reach age 59 1/2, provided your account has been open at least five years. You may also be able to withdraw money earlier without penalty if you qualify for certain exceptions, such as using up to $10,000 toward the purchase of a first home.

A Coverdell ESA is a tax-deferred trust account that helps you save for and fund educational expenses for beneficiaries 18 years old or younger. While more than one ESA can be set up for a single beneficiary, the total maximum contribution per year for any single beneficiary is $2,000.

IRA Savings Accounts

Keeping your retirement savings separate from your other savings gives you tax benefits and makes it easier to track progress toward your savings goal.

  • Minimum opening deposit: $25
  • Same competitive interest rate as a Membership Share Savings Account
  • Option to set up direct deposit or recurring transfers to make saving automatic

 

IRA Certificates

Lock in a higher rate for a specific period of time to make the most the tax-deferred growth an IRA offers.

  • Minimum opening deposit: $1,000
  • Terms from 6 months to 5 years
  • Same competitive interest rates as a regular Certificate
  • No service fees

 

Visit an MCT branch to open your IRA. If you aren’t a member yet, you’ll need to establish your membership with a Membership Share Savings Account. To learn more, please call us at 409-727-1446 or 800-846-1751.