MoneySense
Start early and earn a lifetime of compounded interest. Reap the rewards of your Traditional or Roth IRA when you retire.
Start early and earn a lifetime of compounded interest. Reap the rewards of your Traditional or Roth IRA when you retire.
Invest for the years ahead with tax-deductible contributions to an individual retirement account. Save a little at a time and watch your contributions grow tax-deferred until you withdraw them. It’s your future. Own it.
APY is accurate as of 10.3.2024
Starting at:
0.20%
Benefit from decades of tax-free, compounded growth with a Roth IRA. When your investments earn interest, that amount gets added to your account balance, compounding your interest and dividends over time.
APY is accurate as of 10.3.2024
Starting at:
0.20%
Education can come with a high price tag. Save for it by opening a tax-free Coverdell Education Savings Account (CESA) in the name of a child up to age 18.3 Unlike 529 plans, CESA funds can be used for elementary, secondary or higher education.
Traditional IRA | Roth IRA | Coverdell Education Savings Account | |
---|---|---|---|
The right fit for you if… | You’re under 70 ½, want a tax-deductible way to save for retirement and anticipate being in the same or lower tax bracket when you begin taking withdrawals | You’ve reached an age where you want to accelerate your tax-free retirement savings and anticipate being in a higher tax bracket when you begin taking withdrawals | You want a tax-free way to save for education expenses, from grade school to college |
Deposit & Balance Requirements | $100 minimum balance (Share), $1,000 minimum balance (Certificate) | $100 minimum balance (Share), $1,000 minimum balance (Certificate) | $2,000 annual contribution limit, no limit on number of CESAs for a designated beneficiary |
Tax Benefits | Contributions grow tax-deferred; tax-deductible each year (subject to income limitations if you’re in an employer-sponsored plan) | Contributions grow tax-free; not tax-deductible in current tax year | Available only to single taxpayers with adjusted gross income (AGI) levels of $95,000 or below and married taxpayers with AGI of $190,000 or below |
Dividends/Interest | Accrues and compounds monthly, bonus rate on all certificates over $50,000* | Accrues and compounds monthly, bonus rate on all certificates over $50,000* | |
Withdrawals & Distributions | Penalty-free withdrawals taxed as current income after age 59½ | Penalty- and tax-free withdrawals after age 59½ from accounts open at least five years | Must be used before a student turns 30 or taxes, fees and penalties will apply |
Learn More about Traditional IRAs | Learn More about Roth IRAs | Learn More about Coverdell Education Savings Accounts |
*USCCU pays a bonus rate on all certificates over $50,000. Please refer to the USCCU Truth-in-Savings disclosures for complete information on account terms and related conditions. Early withdrawal penalties apply. Fees may reduce earnings. Rates may vary after account is opened.
USC Credit Union is safe, and I can trust to invest my money there.
Need help deciding on a retirement plan or other investment? Talk to a financial advisor.
1AARP Public Policy Institute, July 11, 2022
2USCCU pays a bonus rate on most certificates over $50,000. Promotional offers do not include a bonus rate incentive. Please refer to the USCCU Truth-in-Savings disclosures for complete information on account terms and related conditions. Early withdrawal penalties apply. IRS penalties may apply for premature withdrawals in addition to an early withdrawal penalty. Please consult your tax professional for more information.
3Contributions are not tax-deductible and are limited to $2,000 annually. Available only to single taxpayers with adjusted gross income (AGI) levels of $95,000 or below and married taxpayers with AGI of $190,000 or below.