Individual Retirement Accounts
ORNL Federal Credit Union's Roth and Traditional IRAs give you a variety of federally insured, tax-deferred ways to save for retirement while you earn a competitive dividend rate. Changes to the tax laws beginning with tax year 2002 make IRAs more attractive than ever.
All of our IRAs are federally insured to at least $250,000 by the NCUA with an additional $250,000 in coverage from American Share Insurance.
For added convenience, you can gradually build your retirement savings through automatic payroll deductions, or you can earn a higher rate by opening an IRA certificate. You can designate any of our certificate types with a maturity of three months to sixty months as your IRA. Traditional IRAs, Roth IRAs, and Coverdell Education Savings Accounts (formerly called the Education IRA) are all available with ORNL Federal Credit Union.
Many members contributing to a Traditional IRA for tax year 2013 may be eligible for an immediate tax deduction. (Consult your tax advisor for complete details). Recent changes to the IRA regulations allow eligible individuals to contribute to Traditional or Roth IRAs up to a total of $5,500 or $11,000 per couple for tax year 2013. Eligible IRA holders age 50 or more can make an additional "catch up" contribution for tax year 2013 of up to $1,000.
An IRA is also a perfect place to reinvest your 401k, Qualified Retirement Account, or Stock Rollover from your employer when you change jobs.
Variable Rate IRAs
This IRA investment is similar to a regular savings account and can be used for Roth, Traditional or Coverdell Education Savings Accounts. You decide how much to deposit…whenever you want. Payroll deduction is available for current tax year contributions.
- Pays a market rate on the entire balance
- Rates set at the beginning of every month
- Compounds monthly
- Requires a $500 minimum deposit to open
This IRA gives you lots of options for investing. You may select from our current certificate types, including Custom Certificates (or even Jumbo Certificates for IRAs of $100,000 or more) with terms from one month to sixty months.
- Lock in a fixed rate
- Pays a market rate on the certificate
- Set the term for as little as one month or as long as sixty months
- Requires a $500 minimum deposit to open ($100,000 for Jumbo IRA Certificate)
Tax Deferred Savings
One of the best features of a traditional IRA is that it can help you save for retirement with tax-deferred earnings and a possible deduction on your income taxes. Please be aware that the conditions governing tax deductions depend upon many factors. You should consult your tax advisor for complete details. All IRA accounts are subject to many federal tax rules, and there are various tax implications and eligibility requirements for Roth, Traditional, and Coverdell Education Savings Accounts.