Traditional IRAs generally are the most common IRA opened in the retirement market today, offering a variety of tax benefits for you now and also in retirement.

Key characteristics and benefits:

• Traditional IRAs allow for contributions that may be tax-deductible, depending on your income level.
• You may have access to immediate tax advantages such as deductible contributions.
  • Traditional IRAs can potentially give you a tax break now.
    • This is dependent on your tax circumstances.
  • Contributions to a Traditional IRA must also abide by the IRA contribution guidelines and the limits for the year. Refer to the IRS website for details.
  • We strongly advise you to seek advice from a tax professional to determine your eligibility to complete a Traditional IRA contribution and if you are able to deduct it from your taxes.
• The earnings (dividends) in your IRA Savings and/or your IRA Certificates in your Traditional IRA Certificates also grow tax-deferred.
  • Earnings are not reported to the IRS.
  • When you are ready to withdraw, you only pay taxes on the amount you withdraw from the Traditional IRA, or when you are of age and you are mandated to complete your Required Minimum Distribution (RMD).
• There are currently no annual service fees on EECU IRAs.
• Another benefit of any EECU IRA type is that you have access to distribute your assets at any time.
  • Withdrawing from other retirement plans often requires a life-changing event and can be more complicated.
  • Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.
    • Consider the possible tax consequences of a withdrawal.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.

Roth IRAs are quickly becoming a favorite type of IRA in the retirement market because of the variety of benefits they can offer you later in retirement.

Key characteristics and benefits:

• Roth IRAs consist of post-taxed funds intended for your retirement.
• There are no tax deductions on contributions into a Roth IRA.
  • However, Roth IRAs can give you a tax break later during withdrawals.
  • Contributions to a Roth IRA must also abide by the IRA contribution guidelines and the limits for the year. These limits are posted on the IRS website.
  • We strongly advise you to seek advice from a tax professional to determine your Roth IRA Contribution eligibility.
• The earnings (dividends) in your Roth IRA Savings and/or your Roth IRA Certificates also grow and may be tax-free when you withdraw.
  • Earnings are not reported to the IRS.
  • Deposits into a Roth IRA should already be taxed, so the principal amount of the Roth IRA cannot be subject to taxes or penalties again when withdrawn, as long as the Roth IRA owner abides by the Roth IRA and also the qualified distribution guidelines.
• Withdrawals from a Roth IRA can be tax-free, provided the distribution is a qualified one.
• There are no Required Minimum Distributions (RMDs) on Roth IRAs.
• There are currently no annual service fees on EECU IRAs.
• Another benefit of any EECU IRA type is that you have access to distribute your assets at any time.
  • Withdrawing from other retirement plans often requires a life-changing event and can be more complicated.
  • Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.
    • Consider the possible tax consequences of a withdrawal.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.

Coverdell Education Savings Accounts (ESAs) are investment accounts designed to help families save for education expenses from elementary school through college.

Key characteristics and benefits:

• Coverdell ESAs consist of funds intended to help families save for qualified education expenses.
• A family member can open a Coverdell ESA.
  • Example: A grandmother may contribute to her grandson’s Coverdell ESA to help with future education costs.
  • Example: An uncle may contribute to his niece’s Coverdell ESA to help with her future college expenses.
• There are no tax deductions on contributions into a Coverdell ESA.
  • However, Coverdell ESAs can give the designated beneficiary a tax break later during withdrawals.
  • Contributions to a Coverdell ESA must also abide by the contribution guidelines and the limits for the year. Refer to the IRS website for details.
  • We strongly advise you to seek advice from a tax professional to determine your Coverdell ESA contribution eligibility.
• Contributions to a Coverdell ESA can no longer be completed in the year the designated beneficiary is turning 18.
• The Coverdell ESA must also be closed by the time the designated beneficiary turns 30.
• The earnings (dividends) in Savings and/or Certificates in a minor child’s Coverdell ESA also grow and may be tax-free even when they are distributed later, as long as when the responsible individual or designated beneficiary withdraws the funds they are used for qualified expenses.
  • Earnings in a Coverdell ESA are not reported to the IRS.
  • Qualified expenses are listed on the IRS website.
• Because withdrawals from a Coverdell ESA can be tax-free, provided the funds are used for qualified expenses, this means that earnings in the Coverdell ESA are then also tax-free.
  • o Both contributions and earnings may be distributed tax-free when used for qualified education expenses.
• There are currently no annual service fees on EECU Coverdell ESAs.
• Another benefit of a Coverdell ESAs is that you have access to distribute your assets at any time.
  • Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.

Inherited IRAs can offer time assistance and comfort to the beneficiary of a retirement plan or IRA account who needs to make a decision on their inherited funds in a timely manner.

Key characteristics and benefits:

• Inherited IRAs consist of retirement funds that the beneficiary inherited from a previous owner who has passed away.
• Contributions are not allowed into an Inherited IRA.
• Inherited IRAs can offer numerous benefits depending on your relationship to the deceased and also the type of Inherited IRA you open (Traditional or Roth).
  • If you were the spouse of the previous retirement owner, you can treat the IRA as your own and transfer the retirement funds into your own regular IRA.
• Inherited IRAs give the beneficiary the benefit of delaying tax consequences on the inherited funds (as applicable), while also allowing the inherited funds to continue to earn dividends in the process.
  • Example: Instead of taking a lump sum of their inherited portion and being subject to taxes immediately on those funds withdrawn, a beneficiary of a Traditional IRA may opt to transfer those funds into an Inherited IRA, providing them with more options and, more importantly, more time to make a decision on when to withdraw all of the funds in the Inherited IRA (generally within 10 years). The taxes could then be spread over a 10-year period, while assets continue to earn dividends over that same time period.
• If the original retirement owner owned a pre-taxed retirement plan (401k) or Traditional IRA, and already reached their Required Beginning Date (RBD), beneficiary(s) of these are required to take annual distributions during the first nine (9) years of the Inherited IRA and close the account in year 10.
• The earnings (dividends) in your Inherited IRA Savings and/or your Inherited IRA Certificates also grow tax deferred or can be tax-free, pending the Inherited IRA type.
  • Earnings are not reported to the IRS.
  • Taxes are only paid on the funds withdrawn when you are ready to withdraw from the Inherited Traditional IRA, or when mandated to complete a Required Minimum Distribution (RMD) for the year.
  • Withdrawals from Roth Inherited IRAs may be tax-free as long as certain withdrawal requirements are met.
• Withdrawals from an Inherited IRA may avoid the IRS early withdrawal penalty if you’re under age 59½.
• There are currently no annual service fees on EECU Inherited IRAs.
• Another benefit of any IRA type is you always have access to distribute your assets at any time.
  • Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance with this.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.

This transaction is referred to as a Trustee-to-Trustee Transfer and is a relatively easy transaction to process.

If your retirement funds are already in an IRA elsewhere and you want to enjoy the ease and benefits of an IRA with EECU, we can request the IRA funds to be sent to us from your current custodian utilizing a Trustee-to-Trustee Transfer request. We will need a recent account statement from your current IRA holder. Once we receive the funds from them, we will mail copies of forms and a receipt to you.

A Transfer request is a direct movement of assets between like IRAs (Traditional to Traditional) and is from one financial organization to another, and what’s even better is it is non-reportable to the IRS.

Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.

Important Consideration:

Please be ready to provide us a recent account statement from your current IRA holder. This helps us facilitate the transaction quicker. Once we receive the funds from them, we will mail you copies of applicable forms and a receipt.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.

This type of transaction is referred to as a Rollover and is a relatively easy transaction to process.

If your retirement funds are not already in an IRA elsewhere – for example, they are currently in a 401(k), a 403(b) plan, a 457(b) plan, an annuity, a Pension Plan, or another Workplace Retirement Plan – and you want to enjoy the ease and benefits of an IRA with EECU, we can request the retirement funds to be sent to us from your plan provider using a Direct Rollover request. We will need a recent account statement from your current retirement plan holder. Once we receive the funds from them, we will mail copies of forms and checks, and a receipt, to you.

A Direct Rollover request is a direct movement of assets between a qualified retirement plan into an IRA, and is from one retirement plan holder to us. This transaction is reportable to the IRS.

Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance with this. We want you to enjoy your IRA here at EECU as soon as possible.

Important Consideration:

Please be ready to provide us a recent account statement from your current retirement plan holder. This helps us facilitate the transaction quicker. Once we receive the funds from them, we will mail you copies of applicable forms and a receipt.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.

An IRA contribution is when personal funds are placed into your IRA to save for your retirement.

Contributions are vital to retirement planning and to the growth of your IRA, and they may also offer tax advantages.

To complete a contribution to your EECU IRA, please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.

Important Considerations:

We recommend confirming your eligibility to contribute to an IRA, based on your IRA type and your income, by first speaking with a tax professional.

Since 2020, there is no age limit to make regular contributions to Traditional or Roth IRAs as long as you or your spouse is working.

There are IRA contribution limits per year; refer to the IRS website for details. These limits may change annually and also apply to the aggregate of all contributions made to your IRA(s) for the year. 

There are no contributions allowed into Inherited IRAs.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.

Required Minimum Distributions are minimum amounts that a Traditional IRA account owner must withdraw annually from their IRA once they reach a certain age. You must begin receiving distributions from your Traditional IRA starting the tax year you attain age 73 (70 ½ if you were born on or before June 30, 1949, age 72 prior to 2023 and on or after July 1, 1949; the age increases to 75 in 2033). RMDs do not apply to Roth IRAs.

The RMD amount is calculated by dividing the prior December 31^st balance of the Traditional IRA by the Traditional IRA account owner’s life expectancy factor for the year, published by the IRS in Publication 590-B, available on the IRS website.

We offer the option to set up the RMD withdrawal to occur automatically for you. However, you are still required to ensure your RMD is completed on time and accurately every year.

Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.

To initiate an IRA withdrawal, please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.

You may withdraw from your EECU IRA at any time. However, it is important to understand that these distributions may be subject to taxes (Traditional IRA) and governmental penalties based on your age. We may impose a fee for early withdrawal from an IRA certificate or closure of an IRA.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.

You can apply by phone or at any EECU branch.

Yes, you will continue to earn interest on the certificate.

No, we will not pull credit for a Share-Secured or Share Certificate-Secured Loan.

Yes, this flexible line of credit can be used for nearly any purpose.

No, there is no annual fee for a Signature Line of Credit.

Yes, you can take small advances as you need funds or you can advance up to your approved credit limit.

Consolidating debt may help improve your credit score over time.

EECU will generally pay your creditors with the proceeds of the loan. A loan representative will review loan payoff details with you at the time of the loan.

You can set up automatic payments from your EECU savings or checking account, transfer money to the loan through Online Access Home Banking / Mobile App, by phone, or in person at a branch.

No, our E-Z Loan makes it easy for you to purchase whatever you need – no receipts required.

The term of the loan depends on the amount borrowed, and we offer 12-, 24- and 36-month terms.