IRAs from Rio Grande Credit Union

Take control of your retirement savings

During retirement, it’s important you have enough income to cover expenses. You can help make sure you are financially prepared by adding a Rio Grande IRA to your retirement plan.

Whether you need to start an IRA or need to rollover an IRA from a past employer, a Rio Grande IRA gives you an additional account to save for retirement, and a safe alternative to riskier investments.

What is a Rio Grande IRA?

A Rio Grande IRA is a type of deposit account that offers certain tax advantages and the safety of a fixed dividend rate. The two most common accounts are traditional IRAs and Roth IRAs.

An IRA is ideal for the member who is seeking:

A risk-free, competitive, dividend earning retirement savings plan
To avoid paying administrative or commission fees
No annual IRA maintenance fee
An insured investment up to $250,000 per account
To rollover or direct transfer money to an IRA from another entity or qualified retirement plan

Rio Grande CU Membership is required for all accounts.

Roth IRA

With a Roth IRA, retirement savings contributions to the account are subject to regular federal and state income taxes. Earnings on a Roth IRA are tax-free if your Roth account has been open for at least five years and the savings are withdrawn after age 59½. This is true for both federal, and in most cases, state income taxes. Contributions (not earnings) can be withdrawn tax-free at any time, and there is no required minimum distribution at or after age 72.

Tax advantages

Contributions are not tax-deductible.1
Earnings grow tax-free, subject to some limitations.
Tax-free withdrawals of original contribution are allowed; potentially tax-free withdrawal of earnings if part of a qualified withdrawal.

Contributions

Maximum Contributions for 2023: Up to $6,500 for those under 50; $7,500 for those 50 and up.

Eligibility

No age restrictions.
If you are single, you may have a modified Adjusted Gross Income (AGI) of up to $153,000 in 2023 to make a full contribution.1
If you are married filing jointly, you may have a modified AGI of up to $228,000 in 2023 to make a full contribution.1

Withdrawals, penalties and distribution requirements

Contributions can be withdrawn anytime without taxes or penalties.
Earnings can be withdrawn, without taxes or penalties, if you are 59-1/2 and your account has been open five years or more
There are no distribution requirements.

¹Not intended as tax advice. Please consult a tax professional. The above descriptions are meant to be educational in nature. Certain restrictions apply to every type of IRAs to take full advantage of their favorable tax treatment. It's important to understand the requirements and limitations on the various IRAs. Rio Grande CU Membership is required for all accounts.

Traditional IRA

Unlike a Roth IRA, the original contributions you make to your Traditional IRA account may be tax-deductible and your account's earnings are tax deferred. You'll have more to invest, maximizing the potential of your earnings. When you retire, withdrawals are taxed as regular income. If your original contributions were not tax-deductible, then they can be withdrawn federally tax free (state taxes may apply). If you withdraw either your original contribution or earnings before age 59½, then you may also be subject to a 10% additional tax.

Tax advantages

Contributions are tax-deductible, subject to certain limitations.1
Taxes are deferred on earnings until you begin withdrawing funds.
Withdrawals are taxable.

Contributions

Maximum Contributions for 2023: Up to $6,500 for those under 50; $7,500 for those 50 and up.

Eligibility

Anyone with earned income may contribute up to age 72.

Withdrawals, penalties and distribution requirements

All earnings and deductible contributions are taxable upon withdrawal.
Penalties will be assessed if withdrawals are taken before age 59-1/2, or if withdrawals are not taken by age 72.
Required minimum distributions upon reaching age 72.

401(k) Rollovers

Thinking of rolling over your 401(k) to a Rollover IRA?

A Rollover IRA offers an easy way to maintain the tax-deferred status of your retirement plan while consolidating your retirement savings into one easy-to-manage account. After considering your options, a Rio Grande CU Rollover IRA may be right for you.¹

What are the features of a Rio Grande Rollover IRA?

Lets you consolidate retirement investments from multiple 401(k) and 403(b) plans left at previous employers. You can even transfer an existing Rollover IRA into your new Rollover IRA
Maintains the tax-deferred status of your retirement investments
Access safe investment choices and less risky options that may be found in your current portfolio

1You have choices for what to do with your employer sponsored retirement plan. Depending on your financial circumstances, needs and goals, you may choose to roll over to an IRA or convert to a Roth, roll over to an employer sponsored plan from a prior employer to an employer sponsored plan at your new employer, take a distribution or leave the account where it is. Each choice may offer different investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment and provide different protection from creditors and legal judgments. These are complex choices and should be considered with care. Talk with a Member Relationship Officer for additional information about your choices.

Rates

IRA Savings Accounts
Effective Date: Wednesday, November 20th, 2024
Share (Savings) Accounts	Minimum Balance to Open Account	Minimum Balance to Earn Dividends	Dividend Rate	APY
Roth IRA Savings	$0.00	$25.00	0.60%	0.60%
Traditional IRA Savings	$0.00	$25.00	0.60%	0.60%
Balance refers to Daily Average Balance. APY is an abbreviation of Annual Percentage Yield. All rates and APY are subject to change without notifice. Certain restrictions apply. Unless paid otherwise, all dividends are compounded monthly.

IRA Share Certificates
Effective Date: Wednesday, November 20th, 2024
Term	Minimum Balance to Open Certificate	Dividend Rate	APY
3 Months	$500.00	3.47%	3.53%
6 Months	$500.00	4.40%	4.49%
12 Months	$500.00	4.14%	4.22%
24 Months	$500.00	3.45%	3.51%
36 Months	$500.00	3.35%	3.40%
48 Months	$500.00	3.04%	3.08%
60 Months	$500.00	3.05%	3.09%
APY = Annual Percentage Yield and assumes principal and interest remain on deposit for the term of the Certificate. Rates are subject to change without notice. $500 minimum required for Share Certificates. Substantial penalties may be imposed for early withdrawal and could reduce earnings.