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 But the money you contribute to your Roth IRA can be withdrawn tax-free at any time.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 Type | Dividend Rate | Annual Percentage Yield | Minimum Opening/Required Balance |
|---|---|---|---|
| IRA Share | 0.05% | 0.05% | $25.00 |
| 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 | 3.78% | 3.85% | $500.00 |
| 12 to 23 Months | 4.41% | 4.50% | $500.00 |
| 24 to 35 Months | 4.51% | 4.60% | $500.00 |
| 36 to 47 Months | 4.02% | 4.10% | $500.00 |
| 48 to 59 Months | 3.98% | 4.05% | $500.00 |
| 60 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.
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.