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 But the money you contribute to your Roth IRA can be withdrawn tax-free at any time.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.
- 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.
- 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 Type||Dividend Rate||Annual Percentage Yield||Minimum Opening/Required Balance|
|Roth IRA Share||0.05%||0.05%||$25.00
IRA & Roth IRA Fixed Rate Certificates
|Available Terms||Dividend Rate||Annual Percentage Yield||Minimum Required Balance|
|6 to 11 Months||3.69%||3.75%||$500.00|
|12 to 23 Months||4.12%||4.20%||$500.00|
|24 to 35 Months||4.17%||4.25%||$500.00|
|36 to 47 Months||3.93%||4.00%||$500.00|
|48 to 59 Months||3.93%||4.00%||$500.00|
There may be a substantial penalty for the early withdrawal of the principal of a Share or IRA Certificate.