IRAs - Traditional IRAs - Roth IRAs - Fort Knox Federal Credit Union

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Traditional, Roth, Coverdell ESA

Which IRA (Individual Retirement Arrangement) is right for you? Fort Knox Federal offers all three so you can compare.

IRA Comparison Chart

Feature Traditional IRA Roth IRA Coverdell ESA (Educational IRA)
Maximum Annual contribution (The maximum can be contributed to one or the other -or- split between both.) $5,500 (if under age 50)
$6,500 (age 50 and over)
$5,500 (if under age 50)
$6,500 (age 50 and over)
$2,000
Tax Deductibility of Contributions Tax deferred up to 100% depending on Annual Gross Income and participation in an employer-sponsored retirement plan Taxes are paid up-front Not tax deductible
Earnings Grows tax-deferred until withdrawn Grows tax-free Grows tax-free
Taxes Upon Withdrawal Withdrawals are taxed as income None, unless taxed for early withdrawals Withdrawals are taxed if they are not used for educaiton expenses
Withdrawal Restrictions Most withdrawals before age 59½results in IRS penalties Most withdrawals before age 59½ result in IRS penalties Must withdraw before beneficiary turns 30
Age at Which Withdrawals Must Begin 70½ None None

Consolidate your IRAs at Fort Knox Federal Credit Union

Moving funds from another qualifying plan to a Fort Knox Federal Credit Union IRA is simple. Consult your tax advisor to help decide which is best for you.

Transfer from one trustee to another- A transfer of funds from one trustee to another. Because there is no distribution to you, the transfer is tax free. Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers.

Rollovers- Generally, a rollover is a tax-free distribution to you from one retirement plan that you can contribute to another retirement plan. The contribution to the second retirement plan is called a "rollover contribution."

To open an IRA, stop by or call any convenient branch location.
For more information visit the IRA Online Resource Guide

Traditional IRAs are potentially tax-deferred retirement plans; you don't pay taxes on your contributions until you withdraw the funds. Contributions can be made as long as you have earned income and you are under age 70½.

Yearly Contribution Limits
Tax Year Under 50 Age 50 and over
2014 $5,500 $6,500
2015 $5,500 $6,500
     
Contribution Deadlines
Due date for filing your return for that year, not including extensions.
For most people this means April 15th of the following year.

With a Roth IRA you pay taxes on contributions and withdraw the funds tax-free when you retire. Contributions may be made after the age of 70½ without any required minimum distributions as long as you have earned income.

Yearly Contribution Limits
Tax Year Under 50 Age 50 and over
2014 $5,500 $6,500
2015 $5,500 $6,500
     
Contribution Deadlines
Current tax year: December 31, 2015
Prior tax year: April 15, 2014

The Coverdell ESA allows saving for education expenses in a tax favored account.

Contributions to a Coverdell ESA are taxed, but earnings grow tax deferred. Contributions are limited to $2,000 annually and only allowed for beneficiaries below the age of 18 subject to income limits of the contributor. Funds may stay in the account until the beneficiary reaches 30 years of age.

Distributions are tax-free if used to pay for qualified education expenses that include tuition, fees, books, supplies and equipment. If the funds are not used for education expenses, the withdrawals are taxable.

Yearly Contribution Limits
Tax Year Amount
2014 $2,000
2015 $2,000
   
Contribution Deadlines
Current tax year: December 31, 2015
Prior tax year: April 15, 2014

Product Minimum Balance Required to Earn Dividends APY 1 Compounded/Credited
IRA
(Traditional, Roth, Coverdell)
$100.00 to $5,000.00 0.10% Quarterly/Quarterly
  $5,000.01 to $10,000.00 0.10% Quarterly/Quarterly
  $10,000.01 to $25,000.00 0.15% Quarterly/Quarterly
  $25,000.01 to $50,000.00 0.15% Quarterly/Quarterly
  $50,000.01 to $100,000.00 0.20% Quarterly/Quarterly
  $100,000.01 and up 0.25% Quarterly/Quarterly

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