Individual Retirement Account ( IRAs )
Workmen’s Circle Credit Union can help you plan for your future. Depending on your specific needs or tax situation, you may choose from a variety of IRA products. Members may choose from Traditional and Roth IRAs. WCCU has trained personnel on staff to assist members with their decision. Click here to view current IRA rates.
| Regular IRA Account | Rate | APY** |
|---|---|---|
| With balance between $50.00 - $2,499.99 | 0.30% | 0.30% |
| With balance above $2,500.00 | 0.50% | 0.50% |
FREQUENTLY ASKED QUESTIONS
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+ Are my IRA deposits at WCCU federally insured by the U. S. Government?
Yes, the aggregate total of a member’s WCCU IRA accounts is federally insured up to $250,000 by the National Credit Union Administration (NCUA) and is backed by the full faith and credit of the United States Government.
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+ What are the contribution limits?
See the Traditional and Roth IRA Contribution Limits Chart below to determine your contribution limit.
Traditional and Roth IRA Contribution Limits
Updated on November 21, 2022
Traditional and Roth IRA contributions are aggregated for purposes of the limit. |
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|---|---|---|
| Tax Year | Contribution Limit | Catch-Up (age 50 or older) |
| 2022 | $6,000.00 | $1,000.00 |
| 2023 | $6,500.00 | $1,000.00 |
Traditional vs Roth IRA
Traditional IRA
A Traditional IRA can be a valuable retirement savings tool. As long as you have earned income, you can establish and contribute to a Traditional IRA. As a tax-deferred account, the tax advantages of a Traditional IRA make saving for retirement easy and painless.
Contributions to a Traditional IRA are deductible on your taxes, and the interest earned is tax-deferred. However, when the funds are withdrawn, the entire withdrawal is taxable.
Roth IRA
Setting money aside now in a Roth IRA is a great way to ensure tax-free income during retirement. As long as you are eligible, you can contribute to a Roth IRA and start taking advantage of its many benefits. Simply invest after-tax dollars and let the earnings accumulate tax-deferred.
Later, if certain qualifications are met, you can withdraw the money tax-free. Taxes were already paid on the contributions (after-tax dollars). Therefore, the interest earned on the Roth IRA is tax-free. That’s the key advantage of investing in a Roth IRA.
Useful Links:
Forms must be printed and delivered to WCCU staff.
Roth IRA Application
Roth IRA Contribution Form
Roth IRA Withdrawal Form
Traditional IRA Application
Traditional IRA Contribution Form
Traditional IRA Withdrawal Form
Change of Address Form
ACH Form
Wire Request Form
Savings Calculators
Current Savings Rates
Coverdell Education Savings Accounts (ESA)
A Coverdell Education Savings Account (ESA) is similar to an IRA, but instead of saving for your retirement, you are saving for a child’s education. With an ESA, individuals can make annual nondeductible contributions on behalf of a child until the child reaches age eighteen (18). The earnings generated remain tax-deferred while in the ESA. When the child uses the ESA assets to pay for qualified education expenses, the contributions and earnings come out tax-free.
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+ How much can I contribute to an ESA?
Depending on your income, you may be able to contribute up to $2,000 per child. Each child may receive no more than $2,000 per year in ESA contributions. Therefore, if more than one person is making ESA contributions for the same child, they may need to coordinate to ensure that the child’s total contributions in one year do not exceed $2,000.
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+ What is the annual deadline to contribute?
You have until the due date for filing your federal income tax return for the year to contribute to an ESA (generally April 15th).
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+ When can ESA assets be withdrawn?
Money can be withdrawn from a child’s ESA at any time, without restriction and is tax-free if used for qualified education expenses.
Useful Links:
Forms must be printed and delivered to WCCU staff.
Coverdell ESA Application
Coverdell ESA Contribution Form
Coverdell ESA Withdrawal Form
Change of Address Form
ACH Form
Wire Request Form
Savings Calculators
Current Savings Rates
Or Call Us At: (912) 356-9225