Savings & Accounts

Individual Retirement Accounts (IRAs)

Everyone wants to be financially secure when they retire. MPS Credit Union offers various IRAs to make it easy for you to get started. An IRA provides one of the easiest and most secure ways to save for your future. How much of your earnings this year will be paid in federal income taxes? This amount could be less when you invest in an IRA, a government-sanctioned plan that helps you create a more financially secure retirement. There are no annual fees or maintenance charges on your IRA.

Advantages of an IRA with MPS Credit Union include:

• Your principal investment is never at risk. Your IRA is federally insured to up to $250,000.
• IRA accounts can be opened with as little as $1.00.
• IRA earnings will grow tax-deferred.
• There are no annual administration fees.

Tired of having to continually watch the ups and downs of stock or bond markets? Then move your IRA to the safety of a Traditional IRA, Roth IRA and a Coverdell IRA. Contact us at to find out which IRA best suits your needs. For our dividend rates.

Traditional IRA

You contribute income before it’s taxed and enjoy tax-deferred earnings until retirement when withdrawals are subject to taxes.

Roth IRA

The Roth IRA is a new savings instrument that allows you to invest after-tax dollars. But, unlike a Traditional IRA, your investment earnings are tax-free, if you maintain the IRA for at least five years and take qualified distributions. The tax-free, non-deductible Roth IRA can greatly accelerate your personal retirement savings. This IRA also enables many individuals, whose income levels do not allow them to contribute to a Traditional IRA, to contribute to a Roth IRA. Many employees with pension plans will also be able to contribute to a Roth IRA. With no taxes on earnings, your Roth IRA could be worth more than a Traditional IRA at withdrawal.

Educational IRA (Coverdell)

For the past several years, a Coverdell Education Savings Account (formerly the Education IRA) has provided an investment tool for the purpose of paying for the future cost of a child's post-secondary education. These contributions and their subsequent earnings are tax-free when withdrawn to pay for qualified education expenses. For 2001, the maximum contribution to all Coverdell Education Savings Accounts of any one designated beneficiary is $500 until they reach the age of 18. For 2002, and later, the annual per-designated-beneficiary contribution limit is raised to $2,000.