Planning for Retirement
At FreeStar Financial Credit Union, we want to help you save the money you need for a comfortable future through investing in an Individual Retirement Account. An IRA is a tax-advantaged savings plan built around your individual needs. It's easy to start, affordable, and can make a world of difference in retirement living.
We offer Traditional, Roth, and Coverdell IRAs with varied deposit options. For your convenience deposits can be made by mail, in person, virtual branch, or by payroll deduction. IRA account dividends are calculated daily and posted quarterly. On IRA certificates dividends are calculated daily and posted monthly.
For the answers to all of your IRA questions, call one of our IRA Specialists today at 586-466-7800 opt. 7.
Traditional IRA
If you’re under age 73 and earn compensation, you are able to contribute to a traditional IRA. The maximum total annual contribution for all of your IRAs combined is:
Tax Year 2023 - $6,500 if you're under age 50 / $7,500 if you're age 50 or older.
Tax Year 2024 - $7,000 if you're under age 50 / $8,000 if you're age 50 or older.
Your earnings and deductible contributions aren’t taxed until withdrawal, which can begin at 59 ½ without penalty, but must begin at age 73. Funds can be used penalty free for a first-time home purchase ($10,000 limit), higher-education expenses, certain medical expenses, and other qualifying reasons.
Roth IRA
Contributions to this account are subject to Modified Adjusted Gross Income limits.
Tax Year 2023 - $6,500 if you're under age 50 / $7,500 if you're age 50 or older.
Tax Year 2024 - $7,000 if you're under age 50 / $8,000 if you're age 50 or older.
You have access to your regular contributions tax-free and penalty-free at any time, and for any reason. Qualified withdrawals, including earnings, are tax-free. As in a traditional IRA, funds are available penalty free for a first-time home purchase, educational, medical expenses, and certain other qualifying reasons. There are no mandatory withdrawals, so you could leave money to your heirs tax-free.
Coverdell
A Coverdell Education Savings Account (ESA) is a trust or custodial account setup solely for the purpose of paying qualified education expenses for the designated beneficiary of the account. This benefit applies to higher education expenses, as well as qualified elementary and secondary education expenses. When a Coverdell ESA is established, the beneficiary must be under the age of 18 or be a special needs beneficiary. Contributions to all Coverdell ESA accounts cannot exceed $2,000 in any given year. In general, the designated beneficiary of a Coverdell ESA can receive tax-free distributions to pay qualified education expenses.
Members should consult a tax advisor to determine the right IRA for their needs.