IRAs

An Individual Retirement Account (IRA) can provide additional retirement security. Both Traditional and Roth IRAs are available as a savings account or certificate. We are available to help explain your options.

Deposits for any tax year may be made until April 15th of the following year and can be set up through payroll deduction. As with all MEFCU deposit accounts, IRAs are insured up to $325,000. You may qualify for tax advantages from either Roth or Traditional IRAs; see your tax advisor for more information.

• Compare Your Options
  

   

  Traditional IRA

  Roth IRA

   

  Traditional IRA

  Roth IRA

  Tax Advantage

  Tax-deferred earnings

  Tax-free earnings

   

  Traditional IRA

  Roth IRA

  Tax Deductibility

  Contributions may be tax deductible

  Non-deductible contributions

   

  Traditional IRA

  Roth IRA

  Eligibility by Age

  Any age¹

  Any age¹

   

  Traditional IRA

  Roth IRA

  Eligibility by Income

  No income limits¹

  Based on income

   

  Traditional IRA

  Roth IRA

  Contribution Limits

  $6,000 ($7,000 if you're age 50 or older), or your taxable income for the year, if your compensation was less than this dollar limit.

  $6,000 ($7,000 if you're age 50 or older), or your taxable income for the year, if your compensation was less than this dollar limit.

   

  Traditional IRA

  Roth IRA

  Required Minimum Distributions
  (RMD)

  If you turned 70 ½ prior to January 2020 RMD is required at age 70 ½. If you turn 70 on July 1, 2019 or later RMD withdrawals are not required until you reach age 72.

  None

   

  Traditional IRA

  Roth IRA

  Taxation at Withdrawal

  Withdrawals of pre-tax contributions and any earnings are taxable when distributed.

  Contributions are always withdrawn tax-free. Earnings are federally tax-free if you’ve had your Roth IRA for five years and one of the following conditions is met: age 59½, death, disability, qualified first-time home purchase.

   

  Traditional IRA

  Roth IRA

  Penalties on Early Withdrawal

  10% federal penalty tax on withdrawals before age 59½ unless an exception applies.²

  Distributions from contributions are penalty-free. 10% federal penalty tax on withdrawals of earnings before age 59½ unless an exception applies.³

  ¹Must have employment related compensation.

  ²For Traditional IRAs, penalty-free withdrawals include but are not limited to: qualified higher education expenses; qualified first home purchase (lifetime limit of $10,000); certain major medical expenses; certain long-term unemployment expenses; disability; or substantially equal periodic payments.

  ³A distribution from a Roth IRA is federally tax-free and penalty-free provided that the five-year holding period has been satisfied and one of the following conditions is met: age 59½, suffer a disability, or qualified first time home purchase.

Health Savings Accounts

For members enrolled in a high-deductible health care plan, we offer HSA accounts which help save funds for qualified medical expenses using pre-tax dollars. Consult your tax advisor to see if this account is right for you.

Coverdell Education Savings Accounts

To save for a child's education, we offer Coverdell ESAs with both savings and certificate options. Contributions are not tax-deductible, but your withdrawals are tax-free if used for tuition, books or other qualified education expenses.

Youth Certificates

Save big and dream big with our Youth Savings Certificate! An annual percentage yield of 4.50% is the perfect way to save for your little one's future. 

Teen Certificates

Picture it and achieve it with our Teen Savings Certificate! With an annual percentage yield of 5.50% you can help your teen build their savings.