Individual Retirement Accounts (IRAs)
If you dream of a comfortable retirement. Island offers IRA Savings & IRA Certificates to help you get there!
Island Federal IRAs are available as Traditional, Roth, or Educational. Stop by your local branch, and we can discuss which IRA makes the best sense for you.
The best time to start to achieve your long-term goals is today! Open IRA at any branch.
- Choose from a number of IRA options, including IRA Savings & IRA Certificates.
- Traditional, Roth or Education IRA in a savings or certificate account are available.
- IRAs give you the power of tax-deferred growth, which can help your savings grow faster.
- Use IRA savings for home purchase or college education – without penalties.
- Federally insured up to $250,000.
|Traditional IRA||Roth IRA|
|Who Can Open 1||If you (or your spouse filing jointly) have taxable income. No age limitations.|
|Maximum annual contribution 1||2022 Tax Year: $6,000 if under the age of 20 $7,000 – age 50 or older|
|2003 Tax Year: $6,500 – if under the age of 50 $7,500 – age 50 or older|
|What is the deadline to make contributions?||Your tax return filing deadline (not including extensions)|
|Tax Benefits 2||Tax-deferred growth. Contributions may be tax deductible||Tax-free growth. Tax-free qualified withdrawals.|
|Earnings||Grows tax-deferred until withdrawn||Grows tax-free|
|Withdrawal restrictions 1||After age 59 ½, taxed as regular income. Prior to age 59 ½, may be subject to tax and an IRS penalty||After 59 ½, tax-free if the account is at least 5yrs. Prior to age 59 ½, may be subject to taxes|
|Exceptions||2* Distributions may be tax-free when funds are used higher education; buying a 1st home, build, or rebuild a 1st home; death; permanently disabled; qualified birth or adoption; medical expenses|
|Withdrawals must begin at age 1||72||None|
|Minimum Balance Requirements||No minimum for IRA Savings. $500 for IRA Certificates|
|Can I have an IRA if I already contribute to a 401 (k)?||Yes 2|
|Fees||No set-up or monthly maintenance fees.|
|Federally Insured by NCUA||$250,000.00 in the aggregate at each credit union|
2*Consult with tax advisor
Self-employed? With NO employer benefits
IRAs are a great way to plan for retirement!
Want to roll over funds from a former employer’s 401(k) or other IRA account?
No problem. We’ll help prepare the paperwork for a seamless transition.
If your goal is to ensure that your child or grandchild will have funds for college, consider an Education IRA (formerly known as Coverdell). Although the contributions you make are taxable, there is no tax penalty for the earnings when the funds are withdrawn for tuition or other expenses. An education IRA can be transferred from one child to another child member of your family if the original beneficiary/child does not use funds.
Speak to an Island Representative to learn more.