Retire in comfort with the help of a high-yield Credit Union IRA—we offer competitive rate Traditional IRA and Roth IRA options so you can get the one that perfectly suits your lifestyle.
Open a credit union IRA or Roth IRA account and start down the road of retirement. Ellafi Federal Credit Union gives you several attractive traditional and Roth IRA options. So when retirement rolls around, fishing on the river vs. relaxing at home won’t seem quite so daunting a decision.
Individual Retirement Account (IRA) Benefits
- Tax-advantaged retirement savings*
- Competitive dividends above standard savings rates
- Traditional and Roth IRA options
- No setup fees
- No monthly or annual maintenance fees
- $5,000 contribution limit per year
- Additional $1,000 “catch-up” contribution allowed for ages 50+
- Funds can be used to purchase certificates within IRA
- $50 minimum deposit to open is for IRA Share Accounts and Coverdell Education Share Accounts
- $25,000 minimum opening deposit for IRA Premium Money Market Accounts (Traditional and Roth)
*Consult a tax advisor.
Traditional IRA vs. Roth IRA
Ellafi Federal Credit Union offers both Traditional and Roth IRAs. What’s the difference?
A Traditional IRA is tax-deferred, meaning whatever you contribute is deductible form your annual income tax. With a Roth IRA, you still pay your annual income tax in full. But, funds can be withdrawn tax-free once you reach a predetermined retirement age. Consult a tax advisor to see which account could help you save!
Traditional IRA
- No income limits to open
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax*
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59 ½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 70 ½
Roth IRA
- Income limits to be eligible to open Roth IRA***
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal*
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59 ½
- Early withdrawals on dividends subject to penalty**
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
*Subject to some minimal conditions.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***Consult a tax advisor.
Coverdell Education Savings Account (ESA)
Invest in your child's education. A Coverdell Education Savings Account (ESA) is the perfect tool for saving money to pay for a child's educational expenses – from kindergarten through college. A Coverdell ESA provides tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life.
Education Savings Account (ESA) Benefits:
- No setup or annual fee
- Dividends grow tax-free
- Withdrawals are tax-free and penalty-free when used for qualified education expenses*
- Designated beneficiary must be under 18 when contributions are made
- To contribute to a Coverdell ESA, certain income limits apply**
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- The money must be withdrawn by the time he or she turns 30***
- The ESA may be transferred without penalty to another member of the family
- $50 minimum deposit to open
*Qualified expenses include tuition and fees, books, supplies, room & board, etc.
**Consult your tax advisor to determine your contribution limit.
***Those earnings are subject to income tax and a 10% penalty.
eBrochures
Traditional IRAs:
What is a Traditional IRA? How much to contribute? Deadlines, eligibility, and more!
Roth IRAs:
What is a Roth IRA? How much can you contribute? Deadlines, eligibility, and more!
Roth IRA vs Traditional IRA:
Can you contribute? Tax deductions, limits, benefits, withdrawal limitations, and more!
Roth IRA vs Traditional IRA:
Wondering what the differences between Traditional and Roth IRAs are?
Conversions:
Find out how conversions work to maximize your retirement savings with a Roth IRA.
Coverdell Education Savings Accounts:
What is a Coverdell Education Savings account? How does it work? How to contribute and more!
IRA - FAQs
What IRA accounts does Ellafi offer?
Ellafi offers both Traditional and Roth Individual Retirement Accounts (IRAs), giving members tax-advantaged options for building retirement savings. Ellafi also offers Coverdell Education Savings Accounts (ESAs) to help members save for qualified education expenses.
What is an Ellafi IRA account?
An Ellafi IRA is a tax-advantaged savings account designed to help you prepare for retirement. Ellafi offers Traditional and Roth IRA options, as well as IRA share accounts and IRA certificates, allowing you to choose a savings strategy that fits your financial goals.
What is the difference between a Traditional IRA and a Roth IRA?
The primary difference is how contributions and withdrawals are taxed. Traditional IRA contributions may be tax-deductible and earnings generally grow tax-deferred, while Roth IRA contributions are made with after-tax dollars and qualified withdrawals can be tax-free. Your eligibility and tax benefits depend on your individual circumstances, so consider consulting a qualified tax advisor.
Who can open an Ellafi IRA?
Eligibility depends on the type of IRA you choose. Traditional IRAs generally do not have income limits for opening an account, while Roth IRAs have income-based eligibility requirements. Ellafi membership is also required to open an IRA account.
Are Ellafi IRA accounts only for women?
No. While Ellafi is focused on empowering women and supporting financial independence, IRA accounts are available to all individuals who meet Ellafi’s membership and account eligibility requirements.
How do I open an IRA with Ellafi?
To open an IRA with Ellafi, you’ll first need to meet the credit union’s membership requirements and complete the appropriate IRA application. Ellafi offers Traditional and Roth IRA options, and its team can help you understand the available account choices.
What are the benefits of an Ellafi IRA?
Ellafi IRA accounts offer tax-advantaged retirement savings, competitive dividends, Traditional and Roth options, and no setup or monthly maintenance fees. Members can also use IRA funds to purchase certificates for additional savings options.
Can I use an Ellafi IRA to purchase a certificate?
Yes. Ellafi allows IRA funds to be used to purchase certificates, including Traditional IRA, Roth IRA, and Coverdell Education Share Certificates. This can give members another option for earning dividends while keeping their savings within an IRA structure.
What is a Coverdell Education Savings Account?
A Coverdell Education Savings Account (ESA) is a tax-advantaged account designed to help families save for a child’s qualified education expenses, from kindergarten through college. Ellafi’s Coverdell ESA offers tax-free growth and tax-free withdrawals when funds are used for qualified education expenses, subject to applicable rules and eligibility requirements.
Make an appointment with our team in the branches!
Do you have questions about your ira account? Do you need to apply for a loan or a credit card?
If you schedule an appointment online, you can choose the time and date that works best for your schedule to come into a branch. You can avoid waiting in the lobby when you need financial help.
Update Your IRA Beneficiary
Keep your plans aligned with what matters most.
Life changes, and your financial plans may change with it. Reviewing your IRA beneficiary information periodically is a simple step that can help ensure your retirement savings are distributed according to your wishes.
Major life events such as marriage, divorce, the birth of a child, or changes in your family circumstances may be a good reason to review your beneficiary designation. Even if nothing has changed, it’s a good idea to check your information from time to time.
Ready to make an update?
Download and complete the IRA Beneficiary Update Form, then return it to us by:
- Mailing it to Ellafi Federal Credit Union (524 South Main Street, Middletown, CT 06457)
- Dropping it off at any Ellafi branch
- Emailing it to memberservices@ellafifcu.org
Download IRA Beneficiary Update Form
If you have questions or need assistance, our team is here to help. Reach out to us or visit your local Ellafi branch.
Your future. Your wishes. Your plan.