CSE offers two different Individual Retirement Accounts (IRAs) to assist you in retirement planning: Traditional IRA and Roth IRA. We offer the option of regular savings accounts and/or certificates for both IRA plans.

Traditional IRA

A Traditional IRA allows you to defer taxes on the earnings on your contributions until they are withdrawn. When you retire, the contributions you take are taxed based on your current income level.

  • Your contributions are potentially tax deductible depending on your income.
  • You must be under age 70 ½ to be eligible to contribute to a Traditional IRA.
  • Before age 59 ½, you may be able to withdraw money without a penalty for a first-time home purchase (up to $10,000 maximum) or to pay qualified costs of a higher education.
  • You cannot make contributions the year you turn 70 ½ or any year thereafter.
  • Required minimum distributions begin the year in which you turn 70 ½.

Roth IRA

A Roth IRA allows you to pay taxes now and reap the benefits in the future. With qualifying limits, Roth IRA contributions and earnings may be withdrawn tax-free.

  • No taxes or penalties on withdrawals of contributions.
  • No taxes on withdrawals of earnings after age 59 ½ if account has been owned for at least 5 years.
  • No taxes on withdrawals if used for first-time home purchase (up to $10,000 maximum) or for higher education.
  • Contributions allowed after age 70 ½ when employed.
  • No required distribution at age 70 ½ or in your lifetime.

IRA Savings

The quarterly dividend for an IRA savings is the same as the regular savings dividend. IRA savings accounts can be opened with as little as $25. You can choose to deposit a lump sum or contribute throughout the year through regular deposits or through payroll deduction.

IRA Certificates

IRA certificates are available in both 18-month and 36-month terms. The minimum deposit is $500.

Contact your tax advisor about the IRA that’s best for you, including its deductibility and tax consequences.

Call or visit any of our locations to open an IRA with the credit union.