CERTIFICATE OF DEPOSITS
Do you have extra money in your savings account or money that
you would like to earn interest on without having the temptation
to spend it? Certificates of Deposit are your answer!
Certificates of Deposit are investment
tools that pay a high return on investments for a fixed period
of time. Certificate of Deposits can help you save and earn
money at the same time. MECECU offers 3, 6, 12, 18, 24, 36, 48, and 60 month
certificates and requires a $500.00 minimum investment. Jumbo Certificates are
also offered with a higher interest rate that require a $10,000.00 minimum investment.
Jumbo Plus Certificates offer the highest yield with a $100,000.00 minimum deposit. Certificates of Deposit compound interest quarterly, which increases your annual
yield.
Click Here For CD Rates
IRA'S
At MECECU, we realize that financial security for the future is something
everyone must consider. We offer Traditional Individual
Retirement Accounts (IRA) and Roth IRAs to help you invest for the future.
The IRS has recently increased IRA contribution limits, so you can make the
most of every hard-earned dollar. Traditional IRA's help you save for your
future while offering IMMEDIATE tax savings benefits. With less income tax
being paid, IRA funds earn high rates, and the earnings are tax deferred until
the time of withdrawal. MECECU members may begin to withdraw from Traditional
IRAs without penalty at age 59 1/2 and must begin withdrawing at age 70 1/2.
We also offer Roth IRAs to serve your financial needs. Roth IRA owners can
withdraw their regular IRA contributions TAX-FREE and PENALTY-FREE at any time.
In addition, the Roth IRA offers the benefit of TAX-FREE earnings as long as
the withdrawal is a qualified distribution. MECECU members may begin to withdraw
from their Roth IRA earnings tax and penalty-free after the Roth IRA has been
opened for five years, and the member has reached the age of 59 1/2.
MECE Credit Union offers a bump-up option on regular and IRA certificates with terms of 24, 36, 48, and 60 months. This allows you to "bump-up" your existing certificate rate to the current rate within the same term, without changing the maturity date of the certificate.
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Who is eligible to contribute? |
Contribution Limits |
Who can make a deductible contribution? |
What are the tax advantages? |
When can you make withdraws without restrictions? |
| Roth IRA's |
- Anyone who has income from compensation or who may be filing jointly with a spouse who earns compensation with the following Modified Adjusted Gross Income -
-Up to $95,000 for single filers
-Up to $150,000 for joint filers
Reduced contributions are allowed for those with higher incomes -
-Up to $110,000 for single filers
-Up to $160,000 for joint filers |
-$5,000 for 2008 and beyond
-Catch-up contributions may be made if over 50
-May not exceed compensation
-Reduces the amount of contributions that can be made to a Traditional IRA
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-No one may deduct their contributions
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-Your regular contributions may be withdrawn tax and penalty free at any time
-After the account has been open for five tax years, your earnings may be withdrawn tax and penalty free for any of the following qualified reasons:
-Age 591/2
-Disability
-Death
-First-time home purchase
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-Your earnings are tax free if the account has been open for five tax years and withdrawn for any qualified reason
- You are not required to start withdrawals when you turn age 701/2
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| Traditional IRA's |
-Anyone that is under the age of 701/2 who has income from compensation or who is filing jointly with a spouse who earns compensation
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-$5,000 for 2008 and beyond
-Catch-up contributions may be made if over 50
-May not exceed compensation
-Reduces the amount of contributions that can be made to a Roth IRA
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-Fully-Deductible Contributions
*Single individuals that are not active in employer retirement plans
*Single individuals that are active in employer retirement plans with a MAGI of less than $34,000
*Married couples with neither spouse active in any employer retirement plan
*Married individuals that are active in employer retirement plans with a joint tax returns showing a MAGI of less than $54,000
*Married individuals that are not active in employer retirement plans with a spouse who is, as long as MAGI is $150,000 or less
-Individuals with an income exceeding the above limits may be able to deduct an amount that is less than the maximum amount that may be contributed |
-Your earnings will grow tax-deferred until they are withdrawn
-Your contributions may be tax-deductible
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-You may withdraw penalty free for any of the following reasons
*Qualified higher-education expenses
*First-time home purchase
*Age 591/2
*Disability
*Qualifying medical expenses that exceed 7.5% of adjusted gross income
*Payment to beneficiaries upon the owner's death
*Payment of health insurance premiums while being unemployed for 12 weeks or more
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Click Here For IRA Rates
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