Individual Retirement Accounts

retired photoIndividual Retirement Accounts (IRAs)

For the first time in more than 25 years, Congress has raised the limit on the Federal Deposit Insurance coverage that protects retirement savings/investment accounts in your credit union. The increase in NCUA coverage for retirement accounts is good news for members who have saved substantial sums for their retirement and want to deposit more than $100,000. Insurance coverage now covers up to $250,000, completely protected by the U.S. Government.


What is an IRA?
An Individual Retirement Account (IRA) is a special savings plan authorized by the Federal Government to help you accumulate funds for your retirement.

Who is eligible to contribute to an IRA?
Every individual who has earned income or received alimony may contribute to an IRA.  Income from other sources such as investments or inheritances does not qualify.  Contributions may not be made for or after the year in which you reach age 70 1/2.

If you are not an active participant in an employer-sponsored pension or profit-sharing plan, you may deduct 100% of your IRA contribution regardless of income level.  If your spouse is an active participant and your joint income is $150,000 or more you cannot fully deduct your IRA contribution.  Partial deductions are permitted for joint incomes between $150,000 and $160,000.

Employees Credit Union offers a variety of IRA plans. To find out which one is right for you please contact our Member Services Department at 214-357-3328.