Individual Retirement Accounts

All Tech CU Individual Retirement Accounts (IRA) require a $25.00 initial deposit to open, feature low set-up and annual maintenance fees and carry up to $250,000 of deposit insurance. Consult your accountant, attorney, tax or financial advisor with regard to your eligibility and personal contribution and distribution restrictions. Tax guidelines are available from the Internal Revenue Service at www.irs.gov.

Traditional & Spousal IRA

  • Contributions may be tax deductible and are based on income, marital status and whether you are an active participant in an employer retirement plan.
  • Earnings grow tax-deferred.
  • Anyone with earned income can contribute up until age 70½ and withdrawals may begin at age 59½ without penalty.
  • Penalty-free withdrawals prior to age 59½ may be available for a first-time home purchase, education expenses, death or disability and large medical expenses.
  • Ideal for anyone not covered by an employer-sponsored plan.

Roth IRA

  • Initial contributions are taxable, but earnings grow tax-free.
  • Eligibility depends on income.
  • Contributions can be made at any age.
  • Withdrawal of contributions allowed at any age.
  • Penalty-free withdrawal of earnings allowed after account has been open for five years and after age 59½. Penalty-free withdrawals before then may be available for a first-time home purchase, education expenses, death or disability and large medical expenses.
  • Ideal for anyone not covered by an employer-sponsored plan.

Rollover IRA

  • Allows anyone under the age of 70½ to roll over a distribution from a qualified retirement plan into a Traditional IRA to avoid the mandatory 20% federal income tax withholding and retain tax-deferred status of the amount you roll over.
  • Ideal for anyone retiring or leaving a job.

Roth Conversion IRA

  • Allows you to convert all or part of an existing Traditional IRA to a Roth IRA so that funds grow tax-free.

36-Month Compound Certificate of Deposit IRA/ESA

  • To provide the potential for higher yields, a fixed-rate 36-Month CD may be opened within any Tech CU IRA or Education Savings Account (ESA).
  • $1,000 minimum to open.
  • Dividends are posted back to the CD until maturity.
  • There is a 10-day grace period from the maturity date to cash in the CD without an early withdrawal penalty.
  • At the end of the grace period, the IRA will automatically renew for 36-months.