IRAs

At different stages in your life, you face different financial needs. Whether you want to start saving for your retirement, buy a new home, finance your child’s education or save for a rainy day, Nutmeg State Federal Credit Union has an IRA to fit your needs.

IRAs
Type of IRA Who Can Contribute Tax Benefits
Traditional IRA Anyone under the age of 70½, who has an income from compensation or who is filing jointly with a spouse who earns compensation, is eligible to open a Traditional IRA.
  • Certain contributions are tax-free
  • All earnings are tax-deferred
  • Distributions for a first-time home purchase or higher-education expenses are penalty-free.
Roth IRA Those eligible include anyone who has income from compensation or who is jointly filing with a spouse who earns compensation, and has the following modified adjusted gross income:

  • Up to $95,000 (single filers),
  • Up to $150,000 (joint filers).
  • Contributions are nondeductible, but qualified distributions such as contributions made after the age of 59½ or a first-time home purchase, are tax free.
  • Distributions are penalty free for higher-education expenses, large medical expenses and certain health insurance premiums.
Education IRA Here, the eligibility is the same as the Roth IRA, but the contributions do not have to come from compensation. In addition, contributions are not allowed after the beneficiary reaches the age of 18.
  • Withdrawals are tax- and penalty-free only for qualified higher-education expenses.
  • Funds can be transferred from one child’s account to another child in the family.

Click here for our savings rates calculator.
Click here for our retirement planning calculator.
Click here for IRA rates.
With more opportunities for penalty-free withdrawals and tax-free earnings, an IRA is a perfect way to save for retirement, roll-over a pension payout, buy a new home or pay for higher education costs.
For more information about the Traditional, Roth or Education IRA, call 860-513-5000 (local) or 1-800-526-6933 (nationwide). Or click here to send an e-mail.