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savings

Individual Retirement Account (IRA)

 

Whether you are saving for retirement or education, Xplore FCU provides a number of tax-advantage IRA savings with flexible features to meet just about any need.

  • Traditional IRA
  • Roth IRA
  • Education Savings Account
  • IRA Flex Fund (Money Market Savings)
  • IRA Certificate Account

Need help deciding what type of IRA best meets your needs? Let one of our IRA Specialists help you sort through your options by stopping by or calling 888.U.XPLORE (888.897.5673).

 

  Who can contribute? How much can I contribute? Who can make deductible contributions? What are the tax advantages? When can I withdraw without restrictions?
Roth IRA You are eligible if you compensation and MAGI* is less than the defined limits set by Congress. If you MAGI is too high to contribute the annual contribution limit, you may be able to make a smaller contribution. You may be able to contribute up to:
  • $5,500 for 2014

For owners age 50 and older, you may be able to contribute up to:
  • $6,500 for 2014

Contributions cannot exceed compensation.
No one can deduct contributions.
  • Earnings are tax-deferred and withdrawals are tax free if the account is open for five years and withdrawals are for qualified reason (age 59 ½ , disability, death, or a first time home purchase**
  • Not required to start withdrawals at age 70 ½
  • Regular contributions can be withdrawn tax free and penalty free at any time
  • After the account has been open five tax years, earnings can be withdrawn tax free and penalty free for any of these reasons: age 59 ½, disability, death, or a first time home purchase**
Traditional IRA Anyone under age 70 ½ who has income from compensation (or who is filing jointly with a spouse who earns compensation).

Anyone who has received a distribution from a qualified retirement plan and decides to move the proceeds of the plan into an IRA.
You may be able to contribute up to:
  • $5,500 for 2014

For owners age 50 and older, you may be able to contribute up to:
  • $6,500 for 2014

Contributions cannot exceed compensation.
Deductible up to annual contribution limit:
  • Single individuals not active in employer retirement plans
  • Single individual active in qualified retirement plans with MAGI below defined limits
  • Married couples with neither spouse active in an employer retirement plan
  • Married individuals active in qualified retirement plans filing join tax returns with MAGI below defined limits
  • Married individuals not active in qualified retirement plans filing joint tax returns with spouses who are, as long as MAGI is below defined limits
  • Earnings grow tax deferred until withdrawn
  • Contributions may be tax deductible
Withdraw penalty free for any of the following reasons:
  • Qualified higher education expenses
  • First time home purchase**
  • Age 59 ½
  • Disability
  • Qualifying medical expense exceeding 7.5%j of adjusted gross income
  • Payment to beneficiaries upon owner's death
  • Payment of health insurance premiums during unemployment
    Qualified Reservist Distributions
Coverdell Education Savings Account (ESA) You are eligible if your MAGI is less than the limits set by Congress. If your income is too high to contribute the annual contribution limit, you may be able to make a smaller contribution. Check with a tax professional for current figures.

Contributions not allowed after the beneficiary reaches age 18 (except for special needs beneficiaries).
  • $2,000 per child each year
  • Limit applies to all Coverdell Education Savings Accounts (ESA) for the same child
No one can deduct contributions.
  • Withdrawals for qualified education expenses are tax free
  • Qualified education expenses include tuition, fees, books, computer equipment and technology required for elementary, secondary and post secondary education
  • A beneficiary may receive tax free distributions from a Coverdell ESA in the same year he or she claims the Lifetime Learning or HOPE Scholarship tax credits
  • Withdrawals are tax free and penalty free only for qualified education expenses (earnings are subject to tax and penalty for most other withdrawals)
  • Funds can be transferred from one child's account to an account for another child in the family

**Individuals who make withdrawals from an IRA account before attaining the age of 59 ½ may be subject to a 10% penalty tax on the taxable portion of the withdrawal. Additionally, withdrawals may be subject to federal income tax withholding. Consult your tax advisor before investing or withdrawing funds from an IRA or other retirement plan.

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Xplore Federal Credit Union, New Orleans, LA. Your savings is federally insured to at least $250,000 and backed by the full faith and credit of the United States Government - National Credit Union Administration (NCUA), a U.S. Government Agency. Xplore Federal Credit Union is an equal opportunity housing lender. 

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