Individual Retirement Accounts (IRAs)

Discover how to make the most of your retirement and education dollars with an IRA.

Traditional IRA

You can open your IRA savings with just $50. A Traditional IRA lets you defer taxes on your earnings until withdrawal. Let your IRA balance grow tax-free until age 59½ when you can choose to start taking distributions, or let it sit until age 70½. Then your withdrawal will be taxed at your then tax-bracket. Also, specific contributions are tax deductible in the year they are made. Eligibility requires a specific, regular income for the named or joint filer, with no income limit stipulation. Most prior contributions to pensions or 401(k) plans are eligible for transfer into your Edwards FCU IRA.*

Roth IRA

With a Roth IRA your money grows tax-free until you need it for retirement. The interest you earn is also tax-deferred. You can also make tax-free withdrawals after five years for a first-home purchase or certain medical needs. There is an income requirement for opening a Roth IRA and contributions to your account are allowed at any age. You can supplement your current retirement plan with a Roth IRA.

Education IRA

Created to help members save for the costs of a child’s education, this account features tax-free withdrawals for any kind of public or private education, including: grade school, high school, or college. It can also be used to pay for virtually every education-related expense, such as: tuition, fees, books, supplies, or room and board. The plan allows total after-tax contributions of $2,000 per year for each child until they reach the age of 18 (subject to some income limitations).