A Worry-free Retirement Solution
A traditional IRA is the foundation of any retirement plan. That’s because it’s a simple, effective and easy-to-manage way to save for a comfortable lifestyle tomorrow, while giving you some significant tax advantages today.
- 0.80% APY
- Allows your earnings to grow tax deferred
- Contributions may be tax deductible
- This up-front tax break may reduce the current income taxes you owe
Some Facts about Traditional IRAs
- You must be less than 70½ years old and have received compensation to qualify for making an IRA contribution.
- You are automatically eligible for a tax deduction if neither you, nor your spouse, are covered by an employer-sponsored retirement plan and your MAGI is under IRS limits.
- In addition to the up-front tax break, money in a traditional IRA accumulates tax-deferred.
- When you take distributions, both your deductible contributions and earnings will be taxed at your regular income tax rate.
APY = Annual Percentage Yield. View Disclosures
Effective April 1, 2006 the National Credit Union Administration (NCUA) increased the share insurance to $250,000 on retirement accounts such as Traditional and Roth Individual Retirement Accounts (IRAs) and SEP IRA accounts.
This change provides greater protection and peace of mind for you, as you save for your retirement. For more information, visit www.ncua.gov.
Please note that retirement accounts are insured separately from other types of share accounts, such as savings and checking accounts.
Frequently Asked Questions
Where do I send checks for deposit to my Alliant IRA Account?
Alliant Credit Union
Attn: IRA/HSA Dept.
P.O. Box 66945
Chicago, IL 60666-0945
Alliant Credit Union
Attn: IRA/HSA Dept.
11545 W. Touhy Avenue
Chicago, IL 60666
Is there a penalty for withdrawing from my IRA before I retire?
The purpose of an IRA is to save for retirement, so this tax-advantaged savings vehicle is specifically designed to discourage investors from withdrawing funds before turning age 59½. If you do so, the IRS generally imposes an additional 10% penalty, which applies to the taxable portion of early withdrawals. There are some exceptions — see an Alliant representative for more details.
When am I required to begin withdrawing money from my IRA account?
You must begin to annually withdraw at least minimal amounts from your IRA once you turn 70½ years of age. These guidelines ensure that investors don't use an IRA as a permanent tax shelter from income taxes.
Can I name a beneficiary for my IRA?
Yes, there are very specific rules and forms to ensure that your IRA funds are dispersed to your intended beneficiary, in case of death. See an Alliant representative for beneficiary forms or questions you might have.
I make too much money to qualify for an IRA tax deduction. Can I still contribute to my IRA?
If you make too much money to make tax-deductible contributions to a Traditional IRA, you can still make non-deductible contributions to a traditional IRA.
How do I know which IRA is right for me?
Everyone has different concerns when it comes to their hard earned money. You might be looking for a conservative approach, one with growth potential or a combination of the two. Alliant Retirement and Investment Services representatives at Alliant Credit Union can help you determine which IRA is right or you. Ensure that your retirement savings are on track with a professional no-cost, no-obligation retirement savings analysis.
Is there a limit on the number of rollovers that can be done?
Yes, there is, and effective Jan 1, 2015, the IRS will be imposing the new IRA Rollover rule which means that an IRA owner may complete only one IRA to IRA rollover per 365 days, regardless of how many IRAs you own without differentiating between Traditional, Roth, and SEP IRAs.
This change of only one Rollover per year will only affect Rollovers, and will not have any impact on Trustee-to-Trustee Transfers.
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|• Not NCUA Insured||• No Credit Union Guarantee||• May Lose Value|
Alliant Credit Union and Alliant Retirement and Investment Services are not registered broker/dealers and are not affiliated with LPL Financial.
*CFP®=CERTIFIED FINANCIAL PLANNER™ The financial consultants of Alliant Retirement and Investment Services are registered representatives of LPL Financial.
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