Individual Retirement Accounts (IRAs)

Saving beyond the basics. Freedom has options to help you save for college or retirement, or to just earn more on your savings. Not familiar with all the options out there? Stop by and talk with one of our financial service specialists. They know what’s up and they’ll help you make sense of it all.

Individual Retirement Accounts (IRAs)
The benefit of having an IRA is that you may receive tax advantages while you save! Which IRA is right for you depends on your age, your income, and when you want to withdraw the IRA funds. Each type of IRA has benefits. IRS tax penalties may also be applied. See our rates sheet, and consult a qualified tax advisor before you proceed.

Apply for an IRA Contribution Loan

IRA Comparison

Traditional IRAsRoth IRAsCoverdell IRAs (used for education expenses):
Potential tax deduction for contributions Contributions are not tax deductible Earnings are tax-deferred and tax-free if used for eligible education expenses
Earnings are tax-deferred Earnings are tax-deferred and potentially tax-exemptContributions are not tax deductible
Distributions are generally taxable Distributions are generally tax-free Contribution limit of $2,000 per child each year
Distributions may begin at age 591/2 without IRS tax penalties No age limit for making contributions Contributions are not considered when calculating Traditional or Roth IRAs
Distributions required to begin by age 701/2 with a required minimum distribution No required minimum distributions Can be transferred to another family member
No further contributions can be made after you reach 701/2 years oldIncome restrictions may apply Almost anyone can contribute on behalf of the child, they aren't just for parents
Apply for an IRA Contribution Loan

You can fund your IRA account from your Regular Share Savings account, Money Market, or Share Certificate account. You may also choose to do a roll-over of any qualified pension fund, thrift plan, or retirement benefit and arrange to deposit the funds in a Freedom IRA. Consult a qualified tax advisor before you proceed. What is a roll-over?

Choosing a way to fund your IRA

 

Features

Regular Share
Savings IRA

Money Market IRA1

Share / Special/ Jumbo Certificate IRA2,3, 4

Access to funds Immediate Immediate When term expires
Minimum Balance
to Earn Dividend
$100 Daily Minimum Balance $2,500 $300 – Share
$1,000 – Special
$50,000 – Jumbo
Term No term required No term required 6 – to – 60-month options
Benefits May have tax benefits.
Earnings may be tax deferred.
May have tax benefits. Earnings may be tax deferred. May have tax benefits. Earnings may be tax deferred.

Disclosures

1 A $10 monthly service fee applies when the balance in a Money Market drops below $2,500.

2 Special Share/IRA Certificates are offered for 13-month, and 25-month terms with a low $1,000 minimum.

3 Jumbo Share/IRA Certificates offer a larger return for savings of $50,000 or more for terms of 6 to 60 months.

4 A penalty will be imposed for early withdrawal that could reduce earnings. IRS tax penalties may also be applied.

Safeguarding your hard-earned money is critical. That’s why Freedom Federal Credit Union has federal share insurance, administered by an independent Federal Government agency, the National Credit Union Administration (NCUA). The National Credit Union Share Insurance Fund (NCUSIF) protects aggregate savings up to at least $250,000 in your regular Share Savings, Certificates, Checking, and Coverdell ESA accounts. Individual Retirement Accounts (IRAs) are insured separately up to $250,000.