IRA’s

An Individual Retirement Account (IRA) is one of the best retirement savings tools available, and it is never too early or too late to start saving. CJFCU offers Individual Retirement Account Options to help you on your road to retirement. Consult your financial planner to help you decide which account would be the best fit for your retirement plans.

Traditional IRA

With a Traditional IRA:

  • Dividends are tax-deferred until distribution.
  • If eligible, you can choose to deduct your annual contribution on your income tax return
  • Contributions can be made up until April 15th of the following year
  • Maximum Annual Contribution effective for 2013* is :
    • Under age 50 – $5,500
    • Over age 50 – $6,500
  • There are no penalties on withdrawals if the taxpayer is:
    • Age 59 ½
    • Buying a first-time home ($10,000 lifetime maximum)
    • Paying for College expenses
    • Disabled or deceased
  • A minimum distribution must begin at age 70 1/2
  • You will receive a statement at least Quarterly

*These limits are subject to annual cost-of living adjustments

Roth IRA

With a Roth IRA:

  • Dividends are tax-free upon distribution
  • Contributions cannot be claimed as a tax deduction
  • Contributions may be withdrawn tax-free at any time
  • Earnings may be withdrawn tax-free if the account has been open 5 years and the taxpayer is:
    • Age 59 ½
    • Buying a first-time home ($10,000 lifetime maximum)
    • Paying for College expenses
    • Disabled or deceased
  • Contributions from conversion IRA’s must remain deposited for 5 years to avoid a penalty
  • Contributions can be made up until April 15th of the following year
  • Maximum Annual Contribution effective 2013* is :
    • Under age 50 – $5,500
    • Over age 50 – $6,500
  • No Required Minimum Distribution (RMD) at the age of 70 1/2
  • You will receive a statement at least Quarterly

*These limits are subject to annual cost-of living adjustments