Individual Retirement Accounts
Are you interested in opening an IRA? OTIS FCU offers both Traditional and Roth Individual Retirement Accounts.
A Traditional IRA is an individual retirement account that allows you to save for retirement with tax-deferred earnings and the possibility of tax-deductible contributions.
A Roth Individual Retirement Account offers different tax incentives than a Traditional IRA to boost your retirement savings. Unlike Traditional IRAs, contributions to a Roth IRA are never tax-deductible. But the money you contribute to your Roth IRA can be withdrawn tax-free at any time.
Our Member Service Representatives can help you decide whether a Traditional or a Roth IRA may be the right choice for you. Take steps to secure your future today.
Consult with your tax advisor for any tax-related questions.
Traditional IRAs
- Earnings are tax-deferred until withdrawal.
- Earnings may be tax-deductible up to $5,500 ($6,500 if age 50 or older).
- There is no minimum contribution requirement.
- Penalty-free withdrawals may begin at age 59 1/2.
- Mandatory withdrawals must be made at age 70 1/2 (minimum distribution age).
- There is no maximum income limit.
- You cannot contribute past the age of 70 1/2.
Roth IRAs
- Earnings are 100% tax-free at withdrawal.
- You can contribute up to $5,500 per year ($6,500 if you are age 50 or older).
- Roth IRAS allow you to lock in pre-retirement tax rates. This is ideal for people who think their tax rates in retirement will be higher than their current tax rates.
- There is no minimum distribution age, so Roth IRAs can be transferred or inherited.
- Maximum income limit to contribute to a Roth IRA for a single individual is $112,000; maximum income limit for a married couple is $178,000.
- You can contribute at any age.
IRA & Roth IRA Share Rates & Fixed Rate Certificates
IRA & Roth IRA Share Rates
| Account Type | Dividend Rate | Annual Percentage Yield | Minimum Opening/Required Balance |
|---|---|---|---|
| IRA Share | 0.05% | 0.05% | $25.00 |
| Roth IRA Share | 0.05% | 0.05% | $25.00 |
IRA & Roth IRA Fixed Rate Certificates
| Available Terms | Dividend Rate | Annual Percentage Yield | Minimum Required Balance |
|---|---|---|---|
| 6 Months | 3.93% | 4.00% | $500.00 |
| 12 Months | 4.17% | 4.25% | $500.00 |
| 24 Months | 3.78% | 3.85% | $500.00 |
| 36 Months | 3.69% | 3.75% | $500.00 |
| 48 Months | 3.69% | 3.75% | $500.00 |
| 60 Months | 3.69% | 3.75% | $500.00 |
There may be a substantial penalty for the early withdrawal of the principal of a Share or IRA Certificate.
