Call Us (800) 285-5669 | Routing # 283978425
Home | About Us | Contact Us | Join | Careers | Support | Site Map

Quick links









Find us on:

Services | Accounts | Loans | Financial Education | Business
IRAs  

Traditional, Roth, Coverdell ESA...

Which IRA (Individual Retirement Arrangement) is right for you? Fort Knox Federal offers all three so you can compare.

IRA Comparison Chart

Feature Traditional IRA Roth IRA Coverdell ESA (Educational IRA)
Maximum Annual contribution (The maximum can be contributed to one or the other -or- split between both.) $5,500 (if under age 50)
$6,500 (age 50 and over)
$5,500 (if under age 50)
$6,500 (age 50 and over)
$2,000
Tax Deductibility of Contributions Tax deferred up to 100% depending on Annual Gross Income and participation in an employer-sponsored retirement plan Taxes are paid up-front Not tax deductible
Earnings Grows tax-deferred until withdrawn Grows tax-free Grows tax-free
Taxes Upon Withdrawal Withdrawals are taxed as income None, unless taxed for early withdrawals Withdrawals are taxed if they are not used for educaiton expenses
Withdrawal Restrictions Most withdrawals before age 59½ results in IRS penalties Most withdrawals before age 59½ result in IRS penalties Must withdraw before beneficiary turns 30
Age at Which Withdrawals Must Begin 70½ None None
Consolidate your IRAs with an IRA Rollover

Moving funds from another qualifying plan to a Fort Knox Federal Credit Union IRA is simple and may be processed as a Direct or Indirect Rollover. Consult a your tax advisor to help decide which is best for you.
Direct Rollover-Funds are distributed from a qualified retirement plan, such as a 401(k), and deposited into a comparable IRA plan. Direct Rollovers are reported to the IRS.

Indirect Rollover-Funds are distributed directly to you and must be deposited into an IRA account within 60 days to avoid being taxed. Indirect Rollovers are reported to the IRS.

To open an IRA, stop by or call any convenient branch location.
For more information visit the IRA Online Resource Guide (PDF format).

Traditional IRAs are potentially tax-deferred retirement plans; you don't pay taxes on your contributions until you withdraw the funds. Contributions can be made as long as you have earned income and you are under age 70½.

Yearly Contribution Limits
          Tax Year                         Under 50                        Age 50 and over
2013 $5,500 $6,500
2014 $5,500 $6,500
 
Contribution Deadlines
Current tax year: December 31, 2014
Prior tax year: April 15,2014

With a Roth IRA, you pay taxes on contributions and withdraw the funds tax-free when you retire. Contributions can be made after the age of 70½ without any required minimum distributions as long as you have earned income.

Yearly Contribution Limits
          Tax Year                         Under 50                        Age 50 and over
2013 $5,500 $6,500
2014 $5,500 $6,500
 
Contribution Deadlines
Current tax year: December 31, 2014
Prior tax year: April 15,2014

The Coverdell ESA allows saving for education expenses in a tax favored account.

Contributions to a Coverdell ESA are taxed, but earnings do grow tax deferred. Contributions are limited to $2,000 annually and only allowed for beneficiaries below the age of 18 subject to income limits of the contributor. Funds may stay in the account until the beneficiary reaches 30 years of age.

Distributions are tax-free if used to pay for qualified education expenses that include tuition, fees, books, supplies and equipment. If the funds are not used for education expenses, the withdrawals are taxable.

Yearly Contribution Limits
                    Tax Year                                                Amount
2013 $2,000
2014 $2,000
 
Contribution Deadlines
Current tax year: December 31, 2014
Prior tax year: April 15,2014
This information is not intended as tax advice. Please consult a tax professional before making decisions regarding your IRA.
Fort Knox Federal Credit Union BBB Business Review

Privacy Policy • Fort Knox Federal Credit Union is not responsible for content at third party links.

This credit union is Federally insured by the National Credit Union Administration

Loan Rate Monitor Deposit Rate Monitor