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Routing # 314092128

Individual Retirement Accounts

One of the greatest challenges facing workers is assuring their financial security in retirement. An Individual Retirement Account (IRA) can assist you in saving for your future. Synergy FCU offers both Traditional and Roth IRAs.

Traditional IRAs

Traditional IRAs offer:

  • Independence, and can be opened and funded without any employer participation
  • Immediate tax benefits, with contributions and/or earnings tax-deferred until retirement
  • Accessibility, with assets always available
  • Flexibility, because there is no minimum contribution in any year, and you choose your own investments

You can contribute to a Traditional IRA if:

  • you are under age 70 1/2, and
  • you have earned income from employment

You can contribute up to:

  • For 2024, a maximum of $7,000 ($8,000 if you're age is 50 or older), or
  • your taxable compensation for the year, if your compensation was less than this dollar limit.

Roth IRAs

Unlike any other type of IRAs, your Roth IRA can provide you with tax-free income during your retirement. Contributions to Roth IRAs are after-tax dollars; you cannot take a deduction from a Roth contribution. But distributions, which potentially may include significant amounts of earnings, are tax-free if you follow certain requirements.

Two factors that make this possible

  • First, the money you contribute to a Roth IRA has already been taxed. Therefore the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines.
  • Second, this retirement savings vehicles allows the money you contribute to grow tax-deferred. If you do not withdraw any of the earnings until you have had a Roth IRA for at least five years, and you satisfy one of four qualifying events, those tax-deferred earnings become tax-free.

Who is eligible?

Unlike the Traditional IRA, there is no 70 1/2 age limit on making contributions. You must, however, have earned income equal to the amount you contribute, and your modified adjusted gross income (MAGI) must be below a certain amount.

If I am eligible, how much can I contribute?

The same general contribution limit applies to both Roth and traditional IRAs. However, your Roth IRA contribution might be limited based on your filing status and income. The IRS website has more detailed information about the specific contribution amounts for Roth IRAs.

IRAs at Synergy FCU

IRAs at Synergy FCU are insured up to $250,000 by the NCUA and up to an additional $250,000 by Excess Share Insurance.

IRAs can be started with as little as $25. To open your IRA, call a Member Service Representative at (888) 272-8228.

*All applications are subject to eligibility.