IRAs

We offer IRAs that meet your needs!

AllSouth Federal Credit Union offers a wide range of IRA products that will help make your retirement dreams come true.

• A $25 minimum deposit is required to open a Traditional or Roth IRA, or Coverdell Education Savings Account.
• No monthly fees.
• Contributions may be made in "lump sums" or by regular deposits to the IRA throughout the year.
• Dividends are paid quarterly.
• IRA Certificates are also available with a minimum deposit of $500 and terms of 12, 18 and 30 months. An IRA Add-On Certificate is available for a 12 month term with a minimum deposit of $100.
• Click here for current IRA and IRA Certificate rates.

Traditional IRA

A Traditional IRA is an account that allows you to defer taxes on your earnings until they are withdrawn. Also, certain contributions may be tax deductible in the year they are made. To qualify to establish a Traditional IRA, the IRA owner must be under the age of 70 1/2 and have earned income. The maximum contribution that can be made to a Traditional IRA is $5000.00 plus an additional $1000.00 if the member is age 50 or over. The contribution deadline for the current year is tax day of the following year, usually April 15. (Ex. Contributions for 2009 may be made until April 15, 2010.)

Conduit (Rollover) IRA

Retiring or changing jobs? Planning on directly rolling over your qualified pension plan into an IRA? If an IRA is composed entirely of one or more rollovers from a qualified pension plan, it may, at a later date be rolled back into a qualified pension plan. You can do this with our Conduit IRA. At AllSouth Federal Credit Union, you can open a Conduit IRA with a zero balance and we will handle the Direct Rollover request from your employer.

Roth IRA

The Roth IRA is an account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, members who expect to be in a higher tax bracket when they retire may benefit more from a Roth IRA than from a Traditional IRA. Unlike the Traditional IRA, there is no requirement to begin taking distributions at age 70 ½.

The maximum contribution that can be made to a Roth IRA is $5000.00 plus an additional $1000.00 if the member is age 50 or over. The IRA owner may be eligible to receive an income tax deduction for his contribution. Eligibility for a deduction is based on whether an IRA owner is an active participant in an employer sponsored retirement plan, the IRA owners tax return filing status, and the amount of adjusted income. The contribution deadline for the current year is tax day of the following year, usually April 15. (Ex. Contributions for 2009 may be made until April 15, 2010.)

Coverdell Education Savings Account (CESA)

The CESA is an account that features tax-free withdrawals for a child's higher education expenses. Unlike the Traditional IRA, contributions are nondeductible. Therefore distributions from a CESA could be penalty free and tax-free. Consult your tax advisor for further information. Eligible taxpayers (Modified Adjusted Gross Income must be within a certain range) may deposit up to $2,000 per year into a Coverdell ESA for a child under the age of 18. Parents, grandparents, other family members, friends, and even the designated beneficiary of the ESA (child) may contribute to the ESA, providing that the total contributions for the child during the taxable year do not exceed the $2,000 limit. The contribution deadline for the current year is tax day of the following year, usually April 15. (Ex. Contributions for 2009 may be made until April 15, 2010.)

IRA Certificates

Earn higher dividends with a traditional IRA Certificate. Traditional IRA Certificates are available with a minimum deposit of $500. IRA Add-On Certificates can be opened with as little $100. Deposits can be made as often as you like during the 12-month term of the certificate.

*IRA Certificates subject to AllSouth Federal Credit Union penalties upon early withdrawal. Please see AllSouth Federal Credit Union's Truth in Savings Disclosure for details.

Open Your IRA Account - It's Quick and It's Easy

After you have joined AllSouth by opening your Share Account...

1. Come By One of Our Convenient Office Locations and Sign the Signature Card; or
2. Contact the Member Answer Center at 803-736-3110 for additional information.

You're Out The Door In Minutes!