IRA's (Individual Retirement Account)

Pima FCU offers Traditional and Roth IRAs.  Each of these IRA's has different features in which some are described below; 

Traditional IRA - As a single tax payer or married taxpayers you can make contributions to a traditional IRA and the deductibility of these contributions depend on your annual income and participation in an employer-sponsored retirement plan.  You will need to contact a tax accountant for deductibility eligibility. 

The age limit for contributions into the Traditional IRA is 70 1/2.  The Required Minimum Distribution (RMD) for IRA funds begin at age 70 1/2.

All earnings are tax deferred.

Earnings and contributions are taxable for deductible contributions.  Earnings are taxable and contributions are tax free for nondeductible contributions.

The IRS charges a 10% penalty fee for withdrawing all or any part of the account before the age of 59 1/2 unless exceptions apply.  The exceptions for the 10% penalty include funds withdrawn due to death, disability, college expenses, first-time home purchase up to $10,000 and certain medical expenses.

Roth IRA - Single and married taxpayers can make contributions to the Roth IRA; however these contributions are nondeductible depending on income.  You will need to contact a tax accountant for contribution limits. 

There is no age limit for making contributions to a Roth IRA.

Tax-free withdrawals of your "contributions" are permitted at any time.  Tax-free withdrawals of "earnings" are permitted after age 59 1/2, in the event of death or total disability, or as a qualified first time home buyer (up to $10,000).  Earnings must have remained in the account for a period of five (5) successive tax years to be tax free.

An individual with a Roth IRA is permitted to withdraw their "contributions" penalty free at any time.  However, "earnings" are subject to penalty prior to age 59 1/2 unless exceptions apply. The exceptions for the 10% penalty of withdrawing "earnings" from the Roth IRA are due to death, disability, college expenses, first-time home purchase up to $10,000 and certain medical expenses.

Contributing to an IRA is a great way to start saving for retirement.  Visit any of our offices and start your IRA today.  For added convenience, you may contribute to your IRA through Payroll Deduction or Direct Deposit.

Your IRA is also insured by the National Credit Union Administration (NCUA) separately from your savings account up to $250,000.00