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Individual Retirement Account (IRA)

IRAs

It’s never too early to start saving for retirement. Missouri Credit Union IRAs offer benefits that make all the difference in retirement planning. IRAs are available to all members at the PLUS and ULTRA Advantage levels in the form of Roth IRAs, Coverdell Educational Savings Accounts as well as Traditional IRAs. IRAs are insured to $500,000.

  • Traditional IRA
  • Roth IRA
  • Coverdell Education Savings Account (formerly Education IRA)

IRA Rates

Traditional, Roth & Educational IRAs – paid quarterly, just $250 minimum balance, add to with Payroll Deposit. IRA Savings rates quoted paid through June 30, 2017.

Savings AmountInterest RateAPY
IRA $50,000 or more 1.94%1.95%
IRA $0 - $49,999.99 0.94%0.94%

Traditional IRA

The Traditional IRA allows you to defer taxes on your earnings (interest earned) until they are withdrawn. Also, your contributions might be tax deductible in the tax year they are made. As always, please check with your Tax Advisor/Consultant for any IRA question.

2001 Retirement Legislation Update – In June 2001, the Economic Growth and Tax Relief Act (the Act) became law. The Act provides for sweeping changes to all individual retirement accounts (IRAs) and employer-sponsored retirement plans. The changes include greater contribution limits, more flexibility in moving money between IRAs and plans, and a variety of other enhancements.

As always, please check with your tax advisor/consultant for specific IRA changes that apply to you.

Roth IRA

The Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution purposes after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from a Roth IRA than from a Traditional IRA.

Coverdell Education Savings Account (CESA)

Coverdell Accounts are not a retirement savings. Instead, it is a savings tool created to help save for an individual’s higher education expenses on a tax-favored basis. Distributions for qualified higher education expenses are federal income tax free and IRA penalty free. In prior years, CESAs were not very attractive to parents, grandparents, and other parties interested in contributing to a child’s education because contributions were limited and CESA assets could only be used for higher education. The Economic Growth and Tax Relief Reconciliation Act of June 2001 dramatically improves the scope and depth of CESAs, beginning in 2002. For details about these improvements, please contact a MCU personal financial officer at any Columbia or Jefferson City location and request informational materials be mailed to you.

IRA Investment Savings Plans

For the purpose of providing additional savings programs for our members, MCU offers a special class of shares known as Individual Retirement Accounts (IRAs) Investment Savings Plans.

  1. Open the IRA Investment Savings with only $250
  2. Add to your IRA Investment Savings with payroll deposit
  3. Interest is paid and credited quarterly to your IRA