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Individual Retirement Accounts

IRAs

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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 an Traditional IRA if:

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


You can contribute up to:

  • a maximum of $5,000, and
  • a catch-up contribution of $1,000 if you are age 50 and older


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 maximum contribution is $5,000. In addition, if you reach age 50 or older by the close of a taxable year, you also may make a catch-up contribution up to $1,000. However, there are income thresholds that may reduce the amount you can contribute.

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 (210) 345-2222 or (888) 272-8228.

*All applications are subject to eligibility.