Individual Retirement Accounts (IRA)
Your path to a more comfortable retirement starts with Empower's Individual Retirement Accounts (IRAs).
We offer various options with different tax advantages that your professional tax advisor can explain fully. All of our retirement savings account products can be designated as Traditional, Roth or Education IRAs, and you can deposit funds into them automatically with Direct Deposit.
IRA Features
- Provides a tax-advantaged savings plan to set aside money for retirement
- Offer Traditional/SEP and Roth IRAs to choose what works best for you
- Allow Primary and Contingent Beneficiaries to be added directly to your IRAs
Eligibility
Traditional IRA
- Earned Income - typically defined as money you earn from employment
- Non-earning spouses who file joint tax return with working spouse
Roth IRA
- Earned Income or be a non-earning spouse who files joint tax return with working spouse
- Subject to income limitations based on modified adjusted gross income (MAGI) limits
Contributions and Distributions
- IRS reviews and determines maximum annual contribution limits annually
- If you are over 50, you may qualify for an additional $1000 contribution, known as a Catch-Up
- Traditional and Roth IRA contributions are cumulative for the annual contribution limit
- Required Minimum Distributions (RMD) required annually from Traditional IRAs upon reaching the age 73 (70 ½ if born before July 1, 1949 or 73 if born 1951 or later)
- No RMD required for Roth IRAs
- Distributions prior to age 59 ½ may be subject to additional tax and/or penalty
Tax Benefits
- Visit Retirement Central for detailed information
- Talk with a tax advisor prior to opening or making changes to existing IRAs
Empowering you to make the best financial decisions.
Explore valuable tools and education to support your unique financial journey.
Empower Federal Credit Union is a full-service financial institution serving members throughout New York State.