I N D I V I D U A L   R E T I R E M E N T   A C C O U N T S 

Individual Retirement Accounts (IRA)
All Tech CU IRAs and ESAs 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 & distribution restrictions. Tax guidelines are available from the Internal Revenue Service at www.irs.gov.

• Traditional & Spousal – 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 – Initial contributions are taxable, but earnings grow tax-free. Eligibility depends on income and 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 already 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 the tax-deferred status of the amount you roll over. Ideal for anyone retiring or leaving a job.
• Roth Conversion – Allows you to convert all or part of an existing Traditional IRA to a Roth IRA so that funds can grow tax-free.
• Education Savings Account (ESA) – Available to help pay for qualified continuing education for anyone under the age of 18. Contributions are not tax-deductible but earnings are tax-free as long as they are used for qualified educational expenses.
• 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 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.

In addition to these services, our Financial Network* program offers the ability to invest in mutual funds, stocks, bonds and annuities within an IRA. For further information, contact the Financial Network representative at 1-800-276-8324 ext 196.

* Securities are offered through Financial Network Investment Corporation, registered broker/dealer and member of the SIPC. Financial Network is not an affiliate of Tech Credit Union. Investments are not deposits, not NCUSIF insured, not insured by any federal government agency, not guaranteed by the credit union and may go down in value.

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