Individual Retirement Accounts (IRAs) with Missouri Credit Union
What is an Individual Retirement Account?
Individual Retirement Accounts, known as IRAs, are savings accounts for an individual’s retirement. IRAs allow the deposited money to grow tax-free or tax-deferred until the individual is ready to retire. IRAs are available in traditional or Roth formats. Our team can discuss your options, and help you choose the right type of IRA for your needs.
Traditional, Roth & Educational IRAs are paid interest quarterly, require just $250 minimum to open, and can be added to with Payroll Deposit. IRA Savings rates quoted paid through June 30, 2022.
|IRA $50,000 or more||1.25%||1.26%|
|IRA $0.01 - $49,999.99||0.25%||0.25%|
The Traditional IRA allows you to defer taxes on your earnings (interest earned) until they are withdrawn. Traditional IRAs may be beneficial for those who expect to be in a lower tax bracket during retirement than pre-retirement. Additionally, your contributions might be tax-deductible in the tax year they are made. As always, please check with your Tax Advisor/Consultant for any IRA questions and for specific IRA changes that apply to you.
The Roth IRA is a nondeductible account that features tax-free withdrawals for specific distribution purposes after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from a Roth IRA than from a Traditional IRA.
Coverdell Education Savings Account (CESA)
Previously known as the Education IRA, the Coverdell Education Savings Account is a tax-advantaged investment and withdrawal account for education expenses including college and vocational school and some K-12 expenses. As the cost of education continues to rise, taking advantage of CESA accounts is a smart strategy for financial planning. Parents, grandparents, relatives, and friends can all contribute to the CESA account, as well as organizations and corporations. To learn more about the Coverdell Education Savings Account and how you can use it, talk to one of our qualified representatives.