IRA Types Available
Contribution limits for Traditional and Roth IRAs
- $6,000 for an individual under age 50
- $7,000 for an individual age 50 or older
For all up-to-date contribution limits reference IRA Publication 590. For all contributions, the taxpayer must have earned income (from compensation or self-employment activities) at least equal to the amount contributed to the IRA. For married couples filing jointly, either spouse can have the necessary earned income.
Benefits of a Century Federal IRA
- IRAs provide a safe and stable investment option
- Accounts are insured up to $250,000 by NCUA
- Receive competitive rates from a trusted financial partner
- Members who have already turned 70 1/2 or who will turn 70 1/2 this year must, by IRA Regulations, take a yearly minimum required distribution from their Traditional IRA account.
- Minimum required distribution information will always appear on our members' December statements. Please refer to your statement to ensure you are taking the proper distribution from your IRA.
- Members that have set up automatic distributions from their IRA account may change the withholding election at any time.
Coverdell Education Savings Account
A CESA is a Trust or Custodial Account created for the purpose of paying for qualified educational expenses and requires a designated beneficiary. When the account is established the beneficiary must be under age 18 or a special needs beneficiary.
Who can contribute? Any individual (including the beneficiary) who's Modified Adjusted Gross Income (MAGI) is less than $110,000 or 200,000 if filing jointly.
How much can be contributed? Total contributions for the beneficiary cannot be more than $2,000 in any year.
Why should I open a CESA for my son/daughter/grandchild? Earnings on the account grow tax free until distributed and funds may be used by the beneficiary for qualified educational expenses including post secondary school or an eligible elementary or secondary school.
For more information and tax benefits of the CESA reference IRS Publication 970.
For the most up-to-date IRA rules and regulations, visit www.irs.gov