Individual Retirement Accounts

Are you interested in opening an IRA? OTIS FCU offers both Traditional and Roth Individual Retirement Accounts.

A Traditional IRA is an individual retirement account that allows you to save for retirement with tax-deferred earnings and the possibility of tax-deductible contributions.

A Roth Individual Retirement Account offers different tax incentives than a Traditional IRA to boost your retirement savings. Unlike Traditional IRAs, contributions to a Roth IRA are never tax-deductible. But the money you contribute to your Roth IRA can be withdrawn tax-free at any time.

Our Member Service Representatives can help you decide whether a Traditional or a Roth IRA may be the right choice for you. Take steps to secure your future today.

Consult with your tax advisor for any tax-related questions.

Traditional IRAs

  • Earnings are tax-deferred until withdrawal.
  • Earnings may be tax-deductible up to $5,500 ($6,500 if age 50 or older).
  • There is no minimum contribution requirement.
  • Penalty-free withdrawals may begin at age 59 1/2.
  • Mandatory withdrawals must be made at age 70 1/2 (minimum distribution age).
  • There is no maximum income limit.
  • You cannot contribute past the age of 70 1/2.

Roth IRAs

  • Earnings are 100% tax-free at withdrawal.
  • You can contribute up to $5,500 per year ($6,500 if you are age 50 or older).
  • Roth IRAS allow you to lock in pre-retirement tax rates. This is ideal for people who think their tax rates in retirement will be higher than their current tax rates.
  • There is no minimum distribution age, so Roth IRAs can be transferred or inherited.
  • Maximum income limit to contribute to a Roth IRA for a single individual is $112,000; maximum income limit for a married couple is $178,000.
  • You can contribute at any age.

IRA & Roth IRA Share Rates & Fixed Rate Certificates

IRA & Roth IRA Share Rates

Account TypeDividend RateAnnual Percentage YieldMinimum Opening/Required Balance
IRA Share0.05%0.05%$25.00
Roth IRA Share0.05%0.05%$25.00
Rates effective 10/1/2023.

IRA & Roth IRA Fixed Rate Certificates

Available TermsDividend RateAnnual Percentage YieldMinimum Required Balance
6 Months4.16%4.24%$500.00
12 Months4.89%5.00%$500.00
24 Months4.51%4.60%$500.00
36 Months4.17%4.25%$500.00
48 Months3.98%4.05%$500.00
60 Months3.93%4.00%$500.00
Rates effective 3/1/2024. All Certificate renewals are automatic. Withdrawals of dividends are allowed. Additional deposits are not allowed. Your certificate account will mature within the term set forth at the left or the maturity date set forth on your Certificate or maturity notice. The credit union will give the owner(s) at least 10 days' notice prior to maturity.
There may be a substantial penalty for the early withdrawal of the principal of a Share or IRA Certificate.

How can OTIS work for you?

If you live, work, worship, or attend school in Franklin County, Canton, Fayette, Hartford, Leeds, Livermore, Livermore Falls, Mount Vernon, Readfield, Turner, Vienna, or Wayne, you’re eligible to be part of OTIS FCU – and we’d love to have you join our community.