The earlier you start, the more you'll end up with
With today's busy lifestyles, you have plenty on your plate. But when retirement comes, you'll have tons of free time and will want to make the most of it. One way to prepare for a bright future is to contact us, open a Traditional or Roth IRA, make annual contributions and enjoy tax-free earnings. When the time comes to step away from the work force, you'll have enough money to live exactly as you wish.
Traditional IRAs
- Put pre-tax funds in a Retirement Savings Account or Certificates of Deposit from Houston Federal Credit Union
- Contribute up to $7,000 annually (Up to $8,000 if you're age 50 or over)
- Get a potential income tax deduction for every year you make a contribution
- All annual interest and dividend income is tax-exempt
- You must begin making withdrawals the year you turn 73
Roth IRAs
- Put after-tax funds in a Retirement Savings Account or Certificates of Deposit
- Contribute up to $7,000 annually (Up to $8,000 if you're age 50 or over)
- Those with higher incomes may qualify only for reduced contributions
- All annual interest and dividend income is tax-exempt
- Withdrawals are tax-free if your account has been open for at least 5 years and you are age 59½ or over; disabled; or buying a first home.
- No minimum withdrawal requirement at any age
Coverdell Education Savings Accounts
Coverdell ESAs are often called Education IRAs, as they feature tax benefits that are similar to those of retirement accounts.
- Save for elementary school, secondary school and college costs
- Contribute up to $2,000 per year per student
- Earn steady dividends on savings accounts or CDs
- Contributions may be made with pre-tax funds. Annual interest and dividend earnings are tax-free and qualified withdrawals are tax-exempt
- Funds may be used for tuition, room and board, textbooks, academic fees and equipment such as laptop computers
- Any family member may contribute to a student's Coverdell account, including parents, grandparents, aunts, uncles, etc.
Informational Resources
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Traditional and Roth IRAs
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Traditional IRAs
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Roth IRAs
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Transfers, Rollovers,
and Conversions
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IRA Retirement Plan Distributions
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Coverdell ESAs
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Inherited IRAs
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Retirement Plans
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SEP, SIMPLE IRA, and Individual (k) Plans
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These brochures are not intended as tax advice. Consult a tax advisor regarding the deductibility and contribution limits.
Must be eligible for Houston Federal Credit Union membership and open a share savings account with a $5 minimum deposit in order to become a member and obtain any product or service. Rates are subject to change monthly. Minimum opening deposit for HFCU Traditional Share IRA, Roth Share IRA and Coverdell Share Account is $5. Minimum opening deposit for HFCU Traditional Share Certificate IRA, Roth Share Certificate IRA, and Coverdell Share Certificate Account is $500. Fees and other conditions could reduce the earnings on the account.
Houston Federal Credit Union is a full-service financial institution serving Greater Houston, Texas, with branches in Sugar Land, Houston, Rosenberg and Missouri City, as well as Greenville, South Carolina.