Individual Retirement Accounts (IRAs)
Set yourself up for a comfortable retirement and enjoy significant tax savings along the way. Prevail Credit Union can help with both traditional and Roth IRAs. The sooner you start, the prettier you'll be sitting. We also offer the Coverdell Education Savings Account for tax-advantaged college savings.
- Summary
- Tax-advantaged retirement savings
- No monthly maintenance fees
- Only $50 minimum opening deposit
- Easy rollover from another institution
- One-time $20 member account fee
- Invest in Prevail CDs within IRA
- Competitive dividends credited quarterly
- Free financial education programs to help you save more and reach financial goals
- Full branch access nationwide with Shared Branching
- $5,000 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Federally insured by NCUA
Take a look at our current rates.
How much should you save to reach your retirement goals? Our customized Retirement Savings Calculator can tell you.
View and Print our IRA Electronic Brochures HERE
- Traditional vs. Roth
The two biggest differences between traditional and Roth IRAs is who can open them and when the tax savings are realized. The following point-by-point comparison can help determine which is right for you.
Traditional IRA
- Anyone under age 70½ can open
- Dividend earnings are tax deferred until withdrawal
- Contributions can be deducted from current income tax returns*
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals begin at age 70½
Roth IRA
- Income must be less than $120,000 annually to open***
- Dividend earnings are 100% tax free
- Contributions are not tax deductible
- Principal can be withdrawn penalty-free at any time*
- Withdrawals of earnings can begin at age 59½; early withdrawals subject to penalty**
- No mandatory withdrawals
How much should you save to reach your retirement goals? Our customized Retirement Savings Calculator can tell you.
*May be subject to some minimal conditions. Consult with a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***Or $177,000 for married couples.
- Coverdell ESA
Formerly called the Education IRA, a Coverdell Education Savings Account provides tax-free earnings when the funds are used for a very specific purpose—a beneficiary's education expenses.
- No annual fee
- Interest grows tax free
- Withdrawals tax free when used for qualified education expenses*
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- Contributions can be made until the child is 18 years old
- Funds must be distributed when recipient reaches age 30
- Contributors do not have to be related to recipient
- Individuals and non-individuals (such as companies or charities) can contribute up to $2,000 per child per year
- Federally insured by NCUA
*Qualified expenses include tuition and fees, books, supplies, board, etc.
