Choose Tax-Free or Tax-Deferred Growth
Orlando Credit Union is your financial partner through all stages in life—including your retirement years. That’s why we offer two distinct Individual Retirement Account (IRA) options that can help you accumulate wealth while leveraging tax benefits.
Traditional IRA
Tax-deferred growth for the future.
Open a Traditional IRA and save for retirement with tax-deductible IRA contributions. Your earnings won’t be taxed until you begin making withdrawals in retirement.
- Minimum deposit of $5
- Earn higher dividends than with other savings products
- Your contributions may be fully or partially tax-deductible1
- Earnings aren’t taxed until you withdraw
- Tax penalties may apply if you withdraw early2
Roth IRA
Keep more of what you earn.
A Roth IRA may be your best choice if you expect to be in a higher tax bracket when you retire. Enjoy tax-free growth and tax-free withdrawals in retirement.
- Minimum deposit $5
- Earn higher dividends than with other savings products
- Contribution limits may apply3
- When you withdraw, neither contributions nor gains/earning are subject to federal income tax
- Tax penalties may apply if you withdraw early2
Contact Us Today to Open an IRA Account
Open an Individual Retirement Account by scheduling an appointment at an Orlando Credit Union branch location near you.
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1IRS rules state that your deduction may be limited if you (or your spouse, if you're married) are covered by a retirement plan at work and your income exceeds certain levels. Your deduction is allowed in full if you (and your spouse) aren't covered by a retirement plan at work.
2Early Withdrawal Penalty: In order to avoid tax penalties by the IRS, you must wait until you are age 59 ½ to withdraw funds or be able to demonstrate your withdrawal is being used for qualified higher education expenses or a first-time home purchase. Roth IRA holders must also satisfy a minimum five-year holding period. If a person takes funds out of an IRA before age 59 ½ for purposes other than qualified higher education expenses or the first-time purchase of a home, this is a "premature" distribution and a 10 percent penalty may be assessed by the Internal Revenue Service (IRS). Premature distributions are also subject to income tax. There are some additional, special circumstances such as death, permanent disability, mental incompetence and certain medical expenses that allow funds to be withdrawn without a 10 percent premature penalty. After age 59 ½, an individual can withdraw funds whenever requested and in any amount without incurring tax penalties.
3Your Roth IRA contribution might be limited based on your filing status and income.
*APY = Annual Percentage Yield current as of March 18, 2019. Rate subject to change at any time without notice. Fees and penalties can reduce earnings on the account.