IRA Savings

Usually considered a longer-term savings vehicle than a regular savings account, an IRA will allow you to place money in an interest bearing account and in some cases enjoy tax advantages.* Dividends on these accounts are compounded and credited monthly.

At Beach Municipal FCU, we currently offer three different types of IRAs:

The Traditional IRA:
This account is beneficial for those who are planning for their retirement or for people who want to benefit from saving for retirement with tax-deferred earnings and possible tax-deductible contributions.

Benefits of a Traditional IRA

  • Anyone who has earned compensation is eligible to open a Traditional IRA.
  • Contributions to your IRA may be tax deductible.
  • Earnings grow tax-deferred until withdrawn. By deferring tax until you retire, you may receive extra tax advantages as you may be at a lower tax rate than before.
  • By deferring tax until you retire, you may gain higher compounded growth than in regular investments.
  • You can withdraw funds earlier for a variety of reasons.
  • Should you find it necessary to make withdrawals prior to the age of 59 ½, certain penalties and taxes may apply.
  • Contribution amounts per year are limited.

To get the most tax advantages possible, please receive professional guidance from a tax advisor. The above benefits are not intended as tax advice.

The Roth IRA:
This IRA is a convenient way to give yourself access to tax-free income upon your retirement. However, there are limitations on allowed contributions.

Benefits of a Roth IRA:

  • Penalty and tax-free earnings when withdrawn for a qualifying reason.
  • No age limits for contributing or requirements for minimum withdrawals.
  • Contribution amounts per year are limited.
  • Contributions can be withdrawn tax-free and penalty-free at any time.

Coverdell Educational Savings Account: (formerly Educational IRA)
The Coverdell Education Savings Account allows a parent, grandparent or friend to set aside money per year, per child, until the child turns 18. Earnings accumulated are tax-free.

Benefits for the Coverdell Education Savings Account:

  • Eligibility is based on Modified Adjusted Gross Income.
  • Withdrawals for certain qualified education expenses are tax-free.
  • Special-needs beneficiaries can withdraw funds tax-free to pay for qualified education expenses at any age.
  • Funds can be transferred from one child's account to an account for another child in the family.

Call or stop by today and let our IRA professionals answer your questions and match you with the IRA that's right for you.

*Consult your tax advisor for details. 

Federally insured by NCUA.