Individual Retirement Accounts (IRA)

Save for retirement in a tax-efficient way

Plan for Your Future with Invidual Retirement Accounts

Our flexible IRA accounts help you save for retirement, and save on taxes, too. Even if you already have a 401(k), a Discovery FCU IRA is a good way to supplement an employer-sponsored plan. Some of our IRAs are even held as fixed-rate share certificates with terms from 6 to 60 months, allowing you to create a strategy that works for you.

Which IRA is Right for You?

Eligibility

  • Eligible to anyone with an annual income or compensation of any kind.

Contribution Rules

  • Maximum of $6,000 per year per person if you are under 50 years old, maximum of $7,000 per year per person if you are over 50 years old.

Tax Benefits

  • Contributions are tax deductible
  • Contributions and earnings grow tax-deferred until withdrawn

Withdrawals & Distributions

  • Penalty-free withdrawal after 59 ½ years old
  • Required Minimum Distribution (RMDs) begin at age 72
  • Withdrawals are subject to tax (income tax, and estate or other taxes may apply)
  • 10% Early Withdrawal Penalty due unless withdrawn for qualified reason (See IRS.gov to get updated info on qualified withdrawals)

Eligibility

  • Eligible to anyone with an annual income less than the limit. See IRS.gov for each year’s income limit.
  • There are no age restrictions.

Contribution Rules

  • Maximum of $6,000 per year per person if you are under 50 years old, maximum of $7,000 per year per person if you are over 50 years old.
  • No age limit for contributions, in some states. 

Tax Benefits

  • Contributions are not tax deductible.
  • Earnings are tax-free, no taxes are due upon withdrawal.

Withdrawals & Distributions

  • Penalty-free withdrawals after 59 ½ years old.
  • No Required Minimum Distribution (RMD) for a Roth IRA.
  • Withdrawals are not subject to tax (income tax does not apply, estate or other taxes may apply.)
  • 10% Early Withdrawal Penalty due unless withdrawn for a qualified reason (See IRS.gov to get updated info on qualified withdrawals.) 

Eligibility

  • When the account is established, the designated beneficiary must be under the age of 18.

Contribution Rules

  • Any individual whose modified adjusted gross income is under the limit set for a given tax year can make contributions. (See IRS.gov for income limits)
  • Maximum of $2,000 per year per beneficiary until. Exceptions for children with special needs.

Tax Benefits

  • Contributions are not tax deductible.
  • Earnings are free from federal income tax if used for qualified expenses before the beneficiary turns age 30. Exceptions for children with special needs.

Withdrawals & Distributions

  • Distributions are tax-free to the extent the amount of the distribution doesn’t exceed the beneficiary’s qualified education expenses.
  • Amounts remaining in the account must be distributed when the designated beneficiary reached age 30, unless the beneficiary is a special needs beneficiary.

To open an IRA, call the credit union at 610.372.8010 or stop by our branch if you’re in the neighborhood.

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“The staff at Discovery FCU is kind-hearted and compassionate.”

OPEN A DISCOVERY FCU TRADITIONAL OR ROTH IRA

  • No monthly maintenance fees
  • Easy, convenient contribution options including direct deposit, account transfers, by mail or in person
  • Choose the IRA that fits your individual needs
  • Higher-rate IRA certificates available
  • Dividends compounded and paid monthly
  • A secure way to save for your retirement

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