Energy Credit Union

Individual Retirement Account

Individual Retirement Account

An Individual Retirement Account (IRA) is a smart way to plan for retirement and educational expenses. Energy Credit Union offers Traditional and Roth IRAs, as well as Coverdell Education Savings Accounts (formerly known as Education IRAs). Each type of IRA offers different benefits and has its own rules and restrictions. Energy Credit Union offers expert advice to help you select the right IRA for your needs. For more information, call or visit Member Services or request an application.

Why open an IRA with Energy Credit Union?

With Energy Credit Unions IRAs you pay no annual fees, there’s no risk of loss, and IRAs are insured by the National Credit Union Administration (NCUA) for up to $250,000. Deposits over $250,000 are insured up to statutory limits set by the Massachusetts Share Insurance Corporation (MSIC).

Traditional IRAs

A Traditional IRA lets you lower your taxable income while saving for retirement. With a Traditional IRA, your contributions are fully or partially tax-deductible, depending on your income and tax-filing status. The earnings grow tax-free until withdrawal.

Roth IRAs

With a Roth IRA, your contributions are not tax deductible, but you may withdraw contributions tax-free at any time. Your earnings grow tax-free, and you may withdraw interest earned free of any taxes and penalties if you hold the account for five years and are buying your first home, or if you are 59 1/2.

Coverdell Education Savings Accounts (ESAs)

ESAs are flexible accounts that allow you to save for your child’s qualified educational expenses, including college, private high school tuition, and after-school tutoring. Relatives and friends can also contribute to an ESA for your child. Contributions are not tax-deductible, but earnings accumulate tax-free, and distributions are tax-free if they are used to meet qualified education expenses.