Savings & Investments » Individual Retirement Account

Individual Retirement Account (IRA)

To Apply, Contact Us » This is a Qualifying Service
Current Rates
60 mo. 1.03% APY*
48 mo. 0.80% APY*
36 mo. 0.55% APY*
24 mo. 0.38% APY*
12 mo. 0.26% APY*
More terms, rates & disclosures
Retirement Planning
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Roth IRA Amendment
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Traditional IRA Amendment
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It's never too early to start planning for your retirement—or your child's or grandchild's education. Let our knowledgeable Financial Specialists help guide you through the choices.

IRA Options

Traditional IRA

The Traditional IRA helps you save for your retirement, and contributions may be deductible.

  • Individuals under age 70½ with qualifying income may contribute
  • Early withdrawals are subject to 10% penalty unless disabled or paying for qualified expenses (e.g., first home, education)
  • Mandatory distributions at age 70½

Benefits

  • Contributions may be tax deductible
  • Interest grows tax-deferred until withdrawn
  • Funds can be used to purchase a first home ($10,000 lifetime maximum)
  • Funds can be used to pay for qualifying education expenses

Roth IRA

A Roth IRA helps you save for your retirement by sheltering your earnings from income tax.

  • Individuals with qualified income may contribute, regardless of age
  • Contributions are nondeductible
  • Early withdrawals of earnings are subject to 10% penalty unless disabled or paying for qualified expenses (e.g., first home)
  • No distribution requirements

Benefits

  • All withdrawals, including earnings, are tax-free if the account has been open at least 5 years and are used for qualified expenses
  • No requirement to withdraw at any age
  • Contributions can be made at any age, with qualified income
  • Funds can be used to purchase a first home ($10,000 lifetime maximum)

Coverdell Education Savings Account (CESA)

A Coverdell Education Savings Account helps you save for a child's or grandchild's education.

  • Individuals of any age may contribute for a beneficiary child or grandchild under age 18, or according to special needs exceptions
  • Contributions are nondeductible
  • Must be used for qualified education expenses
  • Student can be either full-time or part-time
  • Funds must be withdrawn by the time the child beneficiary reaches age 30, or according to special needs exception defined by law
  • Withdrawals after the beneficiary reaches age 30 are subject to taxes and a 10% penalty, unless rolled over to a family member's CESA
  • Contributor must meet income requirements

Benefits

  • All withdrawals, including earnings, are tax-free for qualified education expenses
  • Funds can be rolled over to another family member's CESA
  • Contributions to CESAs are allowed regardless of Traditional or Roth IRA participation

*APY is Annual Percentage Yield.

 

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Madison, WI 53744-4963 43.075532 -89.448226
UW Credit Union, postal PO Box 44963, Madison, WI 53744-4963
43.075532 -89.448226