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 But the money you contribute to your Roth IRA can be withdrawn tax-free at any time.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.
Savings Rates
Saving Rates
Account Type | Dividend Rate | Annual Percentage Yield | Minimum Opening/Required Balance |
---|---|---|---|
Membership Share (Savings) | 0.05% | 0.05% | $25.00 |
Coindexter Club (Youth Savings - Under 13 years of age) | 0.05% | 0.05% | $5.00 |
Share Draft (Checking) | 0.00% | 0.00% | $0.00 |
Clubs | 0.05% | 0.05% | $0.00 |
Holiday Club* | 0.05% | 0.05% | $0.00 |
*Withdrawals made more than 7 days after the account is opened and before the maturity date of October 18, 2021 are subject to a $5.00 penalty. Rates effective 4/1/2021. Savings Rates effective 11/1/2020. |
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Money Management** Rates Effective 5/12/2022 | $2,000.00 | ||
Tier 1 | 0.05% | 0.05% | $0.00 to $1,999.99 |
Tier 2 | 0.25% | 0.25% | $2,000.00 to $20,000.00 |
Tier 3 | 0.35% | 0.35% | $20,000.01 plus |
**Withdrawals must be $500.00 or more and limited to 3 withdrawals per month at no charge. Excess withdrawal will be charged a $1.00 thereafter. Rates effective 4/1/2021. |
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IRA Share | 0.05% | 0.05% | $25.00 |
Roth IRA Share | 0.05% | 0.05% | $25.00 |
Coverdell Educational IRA Share | 0.05% | 0.05% | $25.00 |
Health Savings*** | $0.00 | ||
Tier 1 | 0.05% | 0.05% | $0.00 to $1,999.99 |
Tier 2 | 0.25% | 0.25% | $2,000.00 to $20,000.00 |
Tier 3 | 0.35% | 0.35% | $20,000.01 plus |