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Saginaw Medical Federal Credit Union Go to main content

Individual Retirement Accounts

We offer Traditional, Roth and Coverdell Education IRAs. Our IRAs and IRA Share Certificates earn excellent rates while providing you with a tax shelter for your retirement. Interest is paid monthly. There are no fees for this service.

Traditional vs Roth IRA

This side-by-side comparison gives a general overview of the main differences between Traditional and Roth IRAs. Use it to help you decide which IRA is right for you. If you are eligible for both you can contribute to both as long as your total contributions for the year do not exceed the annual limit.

(This information is not intended to provide tax advice. See a competent tax advisor to help you determine which type of IRA best suits you.)

 

A Traditional IRA may make sense if you

A Roth IRA may be more fitting if you

  • are eligible for a Traditional IRA deduction,
  • are not eligible to contribute to a Roth IRA,
  • anticipate a higher tax rate while saving,
  • anticipate a lower tax rate during retirement,
  • are interested in taking require minimum distribution (RMD) amounts during retirement, or
  • are not concerned about tax savings for beneficiaries.
  • are not eligible for a Traditional IRA deduction,
  • anticipate a lower tax rate while saving,
  • anticipate a higher tax rate during retirement,
  • want to avoid RMDs
  • are concerned about tax savings for beneficiaries, or
  • are not eligible to contribute to a Traditional IRA because of the age limit.

 

Coverdell Education Savings Account

You can save up to $2,000 per year per child until your child reaches 18 with a Saginaw Medical FCU Coverdell ESA. Contributions are made with after-tax dollars but the earnings and withdrawals are tax-free when used for qualified educational expenses. ESA funds may be used for a broad range of qualified expenses for college and public or private K-12 education; including tuition, tutoring, room and board, and even computer equipment. A unique ESA feature is the ability to transfer funds from one child’s account to another in the same family.

 

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