Phone: (401) 739-4600 or (866) 739-9121 | Routing Number: 211590671

Individual Retirement Account

Individual Retirement Account

GCU offers a variety of Individual Retirement Account (IRA) products to save for retirement including Traditional, Roth and Simplified Employee Pension Plan (SEP) IRA’s and also Coverdell Education IRA’s to save for a child’s education. We offer IRA savings accounts and IRA CD’s from three (3) months to five (5) years.  To open or add to an existing IRA please contact our member service department at 401-739-4600 or e-mail at [email protected].

Traditional IRA

  • Contribution limit up to $6,000(if you are over age 50 then $7,000)
  • Contributions can be made if you (or your spouse if filing jointly) have taxable compensation. Prior to January 1, 2020 you were unable to contribute if you were age 70.5 or older.
  • No penalty withdrawals may begin at age 59 ½ and are required at age 72
  • Tax deductible contributions (if you qualify)

For a quick comparison to ROTH IRA

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For important account information

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For our current fee schedule

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Roth IRA

  • Contribution limit up to $6,000(if you are over age 50 then $7,000)
  • No required age to start taking distributions
  • You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts
  • Taxes are paid on the funds deposited now instead of later

For a quick comparison to Traditional IRA click here

For important account information

click Here

For our current fee schedule

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Coverdell Educational IRA

  • Maximum yearly contribution is $2,000
  • Contribution can only be made until the beneficiary reaches the age of 18, although there are special circumstances which allow contributions after the age of 18
  • Distributions for qualified educational expenses are tax free

For important account information

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For our current fee schedule

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SEP IRA

  • To qualify you must be either a sole proprietor, business owner, in a partnership or earn self-employment income
  • No penalty withdrawals may begin at age 59 ½ and are required at age 72
  • Tax deductible contributions (if you qualify)
  • Contributions can be made by the employer between 0% – 25% of the employees compensation, or $57,000 for 2020 and $58,000 for 2021.

For important account information

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For our current fee schedule

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Traditional vs. ROTH IRA comparison
Effective Date 01/01/2021

 

 

 

Features

Traditional

ROTH

Who can contribute?

You can contribute if you (or your spouse if filing jointly) have taxable compensation. Prior to January 1, 2020, you were unable to contribute if you were age 70½ or older.

You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2020 and 2021 limits).

Are my contributions deductible?

You can deduct your contributions if you qualify.

Your contributions aren’t deductible.

How much can I contribute?

The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

  • For 2019, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
  • your taxable compensation for the year.
  • For 2020, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
  • your taxable compensation for the year.
  • For 2021, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
  • your taxable compensation for the year.
What is the deadline to make contributions?

Your tax return filing deadline (not including extensions). For example, you can make 2020 IRA contributions until April 15, 2021.

When can I withdraw money?

You can withdraw money anytime.

Do I have to take required minimum distributions?

You must start taking distributions by April 1 following the year in which you turn age 72 (70 1/2 if you reach the age of 70 ½ before January 1, 2020) and by December 31 of later years.

Not required if you are the original owner.

Are my withdrawals and distributions taxable?

Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.

None if it’s a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.

For more information on Traditional and ROTH IRA’s please view IRS publication 590.

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