An Individual Retirement Arrangement (IRA) allows for tax-favored savings for retirement and education. edUFCU offers both Traditional and Roth IRA Savings Accounts, as well as Coverdell Education Savings Accounts. Each account has a low minimum deposit — you can get started with as little as $1 — and is has no annual or setup fees.
The trick to saving for long term goals is automating contributions over a long period of time. Make your deposits through direct deposit with payroll allocation, or set up automatic transfers in Online Banking. You can also make manual deposits at any time by mail or in person.
Contributions to a Traditional IRA may be tax deductible, but distributions in retirement will be subject to income tax. Contributions to a Roth IRA are not tax-deductible, however these funds grow tax-free and qualifying distributions are not subject to income tax.
There are income restrictions that apply to both Traditional and Roth IRAs, so consult with your tax advisor when considering your retirement plan.
The Coverdell Education Savings Account is technically considered an IRA, although it’s for education purposes. Similar to the Roth, contributions are not tax-deductible but withdraws are tax-free when used for qualified expenses for elementary, secondary and college education.
The tax benefits vary from state to state, and income restrictions also apply, so contact your tax advisor for information on tax laws and your individual situation.
Visit one of our branch locations to open your IRA or Education Savings Account.
You may also apply by mail. Your signature on your application must be notarized. Send your completed application, copy of your ID and check or money order for your deposit to:
PO Box 232
New Castle, DE 19720