Traditional IRA

RECU offers a share savings IRA that pays the same quarterly interest rate as share savings accounts. Thirty-six month certificates are also available.

Individual retirement accounts are a smart way to save for the future. A traditional IRA can be opened and funded without any employer participation. Contributions and/or earnings may be tax-deferred until retirement. Unlike many employer plans, money in the account is always accessible; however, until age 59 1/2 there is a 10 percent early distribution penalty unless you qualify for an exemption due to one of the following: disability, qualifying education expenses, unemployment, qualifying first home purchases, death, or receipt of your IRA assets in equal payments over your life expectancy.

Members under age 70 1/2 may contribute to an IRA at a maximum of $3,000 in 2004.

For more information on a traditional IRA please contact Pam Nelson at (770) 913-5300 or send us a note.

Roth IRA

Roth IRAs differ from Traditional IRAs in that the money you contribute to a Roth IRA has already been taxed. So the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines. This retirement plan allows the money you contribute to grow tax-deferred. If you do not withdraw any of the earnings until you have had the plan for at least five years, or satisfy one of the qualifying events, those tax-deferred earnings become tax-free. Unlike the traditional IRA, there is no 70 1/2 age limit on making contributions. You simply need to have earned income equal to the amount you contribute up to a maximum of $3,000 per year for tax years 2002 - 2004. For more information on a traditional IRA please contact Pam Nelson at (770) 913-5300 or send us a note.

* The Credit Union provides not legal advice to members, and provides the foregoing information from a reliable resource to give our members a basis understanding of these services. You should consult with your tax or legal adviser regarding any particular and the current status of applicable federal and state laws.