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HFS FCU E-Statements

Individual Retirement Account (IRA)


If you’re looking to save for your retirement then an Individual Retirement Account (IRA) from HFS Federal Credit Union may be exactly what you’re looking for. Choosing the right type of IRA requires you to compare the many rules and tax benefits to determine which is best suited for your individual needs. Take a look at the chart below that briefly compares the three types of IRA’s offered at HFS FCU, Traditional, ROTH, and Coverdell Education Savings Accounts.

Traditional IRA Roth IRA Coverdell Education Savings Account
Traditional retirement savings account which keeps your accumulated earnings tax deferred until money is withdrawn from the IRA, at which time the money is taxed as ordinary income. Similar to a Traditional IRA, however, contributions are not tax deductible and Roth IRA account holders are not taxed when they begin withdrawing funds at or before retirement. An account created to provide parents and students with an incentive to save for educational expenses. Funds in the account grow tax free until distributed.
Contributions may be tax deductible1 depending on income limitations, marital status, and other retirement plans. Contributions are not tax deductible. Total contributions are limited to $2,000 per year and are not tax deductible.
Distributions are penalty free at age 59 ½ and are taxed as ordinary income. Minimum distributions must be taken upon reaching the age of 70 ½. Principal contributions can be withdrawn at any time without penalty. Earnings are tax-free1 if money remains in the IRA for at least 5 years and withdrawn for a qualified distribution, including:
  1. Contributions made after age
    59 ½.
  2. First time homebuyer distributions
  3. Disability
  4. Death
Distributions are tax-free1 as long as they are less than the beneficiaries qualified education expenses at an eligible institution. Eligible institutions include elementary, secondary, and post-secondary schools.

To open an IRA today or for more information, visit any of our six convenient branch locations and an Account specialist will help to determine the best solution for your individual needs. You may have the funds transferred from your share account or bring cash, check, or money order for your opening deposit.

Get our current IRA rates here.
1For more information regarding tax implications please consult with your tax advisor

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