Traditional IRA accounts are a special type of investment vehicle that allow your earnings to grow tax-deferred. You can invest up to $5,500 per year in a Traditional IRA account (or up to $6,500 if you are 50 or older).
You are eligible for penalty-free withdrawals from your Traditional IRA once you are age 59½ or older. Once you reach age 70½ you must take a required minimum distribution (RMD) every year. At 70½, you are also no longer eligible to contribute to a Traditional IRA (consider a Roth IRA if you would like to make contributions past this age).
Features and Benefits:
- Awesome dividend rates — consistently among the best in the country
- No minimum deposit. No maintenance fee
- No fee to transfer funds in and out of Element FCU
- At age 70½, automatically distribute your IRS required minimum distributions
- Deposit is insured up to $250,000 by NCUA
- Dividends compounded every month
- Contributions may be tax deductible, helping you to reduce your taxes now
Annual Contribution Limits
2018 – Under age 50 = $5,500
2018 – Age 50 and over* = $6,500
2019 – Under age 50 = $6,000
2019 – Age 50 and over* = $7,000
*Catch-up contribution eligibility begins on January 1 of the calendar year of contributor’s fiftieth birthday.
Visit the Internal Revenue Service website for more information.