It’s never too late (or too early) to plan for your future. Needs vary when it comes to choosing an IRA, depending on where you are in life and how you want your funds to be taxed after retirement. See the comparison between traditional and Roth IRAs below to get an idea of which IRA is right for you.
Compare Traditional & Roth IRAs
| IRA Features | Traditional IRA | Roth IRA |
|---|---|---|
| Maximum annual contributions allowed per individual | 2023: $6,500
2024: $7,000
|
2023: $6,500
2024: $7,000 |
| Maximum annual contributions allowed per married couple | 2023: $13,000
2024: $14,000 |
2023: $13,000
2024: $14,000 |
| Maximum catch-up contributions allowed per individual turning 50 in the taxable year | $1,000
|
$1,000
|
| Who can contribute? | Individuals/spouses with earned income.
Refer to IRS guidelines.
|
Individuals/spouses with earned income. |
| Are contributions tax deductible? | Contributions may be tax deductible.
Refer to IRS guidelines.
|
No, deposits are not tax deductible.
|
| How long can I contribute? | No age limit, provided you or your spouse have earned income.
|
No age limit, provided you or your spouse have earned income.
|
| When are distributions allowed? | A penalty free distribution can be made upon reaching age 59 ½.
Refer to IRS guidelines for other qualified distributions not limited to reaching age 59 ½. |
A penalty free distribution can be made if the account has been opened for five successive tax years.
A penalty free distribution can be made upon reaching age 59 ½. Refer to IRS guidelines for other qualified distributions. |
| Are allowable distributions taxed? | Yes
|
Account is tax free if funds have been held for five successive years, or you reach age 59 ½.
Refer to IRS guidelines for other qualified distributions. |
-
The maximum amount you can put aside annually for an IRA varies by the year in which your contributions are made, and is dependent upon your income and marital status. If you are turning 50 in the tax filing year, you can also benefit from additional catch-up contributions. IRA contributions must be made by your tax filing date.
-
Moving funds to an HVCU IRA from another qualifying plan is simple and may be processed as a transfer or rollover. You may want to consider consulting with a tax advisor to help decide which is best for you:
Direct Transfer – Funds are sent direct from another IRA to HVCU.
Direct Rollover – Funds are distributed from a qualified retirement plan and deposited into a comparable IRA plan.
Indirect Rollover – Funds are distributed directly to you and must be deposited into an IRA account within 60 days to avoid being taxed.
-
When establishing a new IRA plan you will designate your beneficiary and any additional shares under that plan will have the same beneficiary. If you wish to change your beneficiary on an existing plan, please complete the IRA Designation of Beneficiary form.
Check Out Our IRA Savings & IRA Certificate Account Rates
IRA Service Center
Click here for IRA research and blank forms. Forms can be sent to HVCU using the following delivery channels:
- Drop off to any branch location
- Secured email to securedmail.hvfcu.org
- Faxed to (845) 463-1646
- Mail to: Member Support Services, PO Box 1071, Poughkeepsie, NY 12602
Your Money Is Protected
Accounts at HVCU are Federally Insured for up to $250,000. Share insurance coverage is provided by the National Credit Union Administration (NCUA), an independent government agency that charters, regulates and insures federal credit unions. Visit mycreditunion.gov to learn more about your Share Insurance Coverage.
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Important Legal Disclosures & Information
The tools and calculators on the HVCU website are provided for educational and illustrative purposes only. The accuracy of the calculations and their applicability to your financial circumstances are not guaranteed. HVCU does not provide tax, legal, accounting, financial, investment or other professional advice. The tools and calculators should not be used as a substitute for tax, legal, accounting, financial, investment or other professional advice. Your use of the tools or calculators does not assure the availability of, or your eligibility for, any specific product offered by HVCU or its affiliates. The terms and conditions of specific products may differ and affect the results obtained by using these tools and calculators. All financing is subject to credit approval. The default figures, amounts and information shown in the tools and calculators are hypothetical and may not be applicable to you. Please consult with qualified professionals to discuss your particular situation.