IBEW Local 56 Federal Credit Union was chartered in 1961 - Once A Member ... Always A Member

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Individual Retirement Accounts

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Roth IRA's

The Taxpayers Relief Act of 1997 created this new IRA product that allows persons with earned income to save for retirement using non-deductible taxed money. One of the best features of a Roth IRA is that you may withdraw your contributions tax and penalty free at any time after five years while your earnings in a Roth IRA grow tax-free. Withdrawals on earnings may be subject to both tax and penalty depending on whether the reason for withdrawal is considered to be a qualified distribution.

Contributions to a Roth are allowed at any age as long as the IRA owner has compensation for the tax year for which the contribution is made. You may make contributions to both a Traditional IRA and a Roth IRA; however, the aggregate amount between the two cannot exceed $5,500 per tax year.

Features of Roth IRA Shares include:

  • $25 minimum balance to open and earn dividends.
  • Dividends are calculated daily and paid quarterly.
  • We charge no penalty for early withdrawal. The member is responsible for the 10% Federal Penalty Tax for early withdrawals.
  • You and/or your working spouse can deposit a maximum of $5,500 per year if you have earned income of an equivalent amount.  Your non-working spouse is eligible for a maximum of $5,500 per year.  
  • There is a $8.00 annual fee.

"Catch-up" contributions - workers 50 and older can make an additional contribution of $1,000 a year.

Traditional IRA's

If you work and are under age 70 1/2 this year, you can set up a Traditional IRA Share Account regardless of your participation in other retirement plans. With our Traditional IRA's, you receive immediate tax-deferred earnings.

Features of Traditional IRA Shares include:

  • $25 minimum balance to open and earn dividends.
  • Dividends are calculated daily and paid quarterly.
  • We charge no penalty for early withdrawal. The member is responsible for the 10% Federal Penalty Tax for early withdrawals.
  • You and/or your working spouse can deposit a maximum of $5,500 per year if you have earned income of an equivalent amount.  Your non-working spouse is eligible for a maximum of $5,500 per year.  
  • There is a $8.00 annual fee.

"Catch-up" contributions - workers 50 and older can make an additional contribution of $1,000 a year.

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