CommunityWide offers a variety of accounts and tools that can help you meet your future financial needs. The sooner you start saving for retirement, the more secure your financial future will be. Getting started is easy. With an opening deposit for $2,000 you can take the first step toward building your nest egg. Not sure which IRA is right for you?

Check out the details below to decide which IRA type makes the most financial sense for you:

Traditional IRA benefits:

• Earnings are tax-deferred
• Contribute up to $6,500 of earned income per year. If you are age 50 or older, contribute up to $7,500 of earned income per year.
• Penalty-free withdrawals can begin as early as age 59½
• Continue making tax-deferred deposits until age 73
• Take penalty-free early distributions for education or a first-time home purchase (you must still pay taxes on the money you withdraw)

If you'd prefer to pay taxes on your retirement now instead of later we recommend a Roth IRA.

Roth IRA benefits:

• Tax-free earnings if you meet certain conditions
• Contribute up to $6,500 of earned income per year. If you are age 50 or older, contribute up to $7,500 of earned income per year.
• Withdraw the entire amount tax-free after five years if:
  • You are 59½ or older, or
  • You are a first-time home buyer, or
  • You are disabled, or
  • You are a beneficiary of the deceased owner.

What do I need to open an IRA?

• Valid government issued ID, passport, or military identification showing current address. If the address is not correct, bring a utility bill, bank statement, or paystub showing the correct address.
• Social Security Number or TIN
• Opening deposit of $2,000 minimum
• Beneficiary information (Name, address, Social Security number, birthdate)
• If completing a rollover, bring your most recent statement from current IRA or 401K account.
• IRA accounts require special processing and cannot be completed online at this time. Please contact the credit union directly if you wish to open an account of this type so we may assist you with the requirements needed to process such a request.

Common Mistakes with IRA Rollovers

• Waiting more than 60 days to deposit the 401K check into a new IRA – If the check has been made payable directly to you by the plan administrator, it must be deposited into another retirement account by the 60th day or it becomes taxable income for that year.
• Doing multiple rollovers in the same 12 month period. – In most cases the IRS limits you to one rollover per year involving the same IRA. If you do complete a second rollover in the same year the IRS can assess an early withdraw penalty and add the untaxed portion of your IRA funds to your taxable income for that year. There are some exceptions to this rule, including:
  • Rollovers from an employer sponsored plan where the rollover is completed by the plan administrator
  • Conversions where you roll over from a traditional IRA to a Roth IRA
  • When a trustee, such as your credit union, completes the transfer from one IRA to another IRA on your behalf.

For additional details on rollovers, check out this resource provided by the IRS