Individual Retirement Accounts (IRAs)

Start saving for your future today!

  • Minimum opening deposit is $50
  • Offered as either a traditional or Roth IRA

 

An opportunity for higher earnings when you agree to leave your money at Vantage West Credit Union for a predetermined amount of time

  • Minimum opening deposit is $1000
  • Choose from 18-month or 3-year Share Certificate IRAs
  • Automatic rollover at maturity at the current rate
  • Offered as either a traditional or Roth IRA

 

Coverdell Education Savings Account* (ESA)

A high-yield account set up for the purpose of saving for higher learning expenses for a designated beneficiary under the age of 18

  • Minimum opening deposit is $50
  • No maturity date or limits on transaction frequency
  • Contribute up to $2,000 per year
  • Must be set up with the legal guardian of a minor
  • No minimum investment periods, like term certificates
  • Withdrawals are tax free when used for educational expenses
  • Funds can be transferred at any time to a qualifying family member under 30 years old
  • Contributions & withdrawals are subject to government rules and regulations
Rates accurate as of Wednesday, February 10, 2016:
Type Minimum Balance Annual Percentage Yield (APY)
Premium Share IRAs (Traditional & Roth) & Coverdell Education Savings $50 – $499.99 0.60%
$500 – $24,999.99 1.60%
$25,000 – $74,999.99 1.65%
$75,000 – $124,999.99 1.70%
$125,000 - and up 1.75%
18-month Share Certificate IRAs (Traditional & Roth) $500 – $24,999.99 1.08%
$25,000-$74,999.99 1.11%
$75,000 – $124,999.99 1.14%
$125,000 - $249,999.99 1.17%
$250,000 - and up 1.20%
3-year Share Certificate IRA (Traditional & Roth) $500 – $24,999.99 1.78%
$25,000 – $74,999.99 1.81%
$75,000 – $124,999.99 1.84%
$125,000 - $249,999.99 1.87%
$250,000 - and up 1.90%

Traditional vs Roth

Traditional IRA
Money you contribute into a traditional IRA may be tax deductible*. Earnings on contributions will not get taxed until you withdraw the money.  For example, if you make $40,000 in a year, and put $3,000 of it into a traditional IRA, you’d pay income tax on $37,000.  Additionally, your contributions grow tax-free throughout the years.  When you withdraw the money after age 59.5, the money gets taxed as income.

Roth IRA
Unlike a traditional IRA, the money you contribute to this type of IRA is never tax-deductible.  Using the example above, you’d still get taxed on your income of $40,000 – even after placing $3,000 into a Roth IRA.  One of the biggest differences is when you withdraw money from this type of account, none of it (including earnings) gets taxed — so long as the account has been opened for at least five tax years and you’re older than age 59.5. Think of a Roth IRA as something that provides tax-exempt (instead of tax-deferred) savings.

*Consult your tax advisor about IRA and Coverdell Education Savings Account eligibility, contributions, qualifications, and early withdrawal penalties. Maintenance fees may apply.

Annual Percentage Yield. Subject to approval.  Certain restrictions may apply. Rates subject to change. Early withdrawals, fees,and other conditions could reduce the earnings on the account. Credit union membership required.  Accounts federally insured to at least $250,000 by the National Credit Union Administration. IRAs separately federally insured up to $250,000 by the National Credit Union Administration.