Individual Retirement Accounts (IRAs)
Save for retirement with a Pima Federal IRA. Visit any of our branches and we'll help you open your IRA today. And to make saving easy, you may contribute to your IRA through payroll deduction or direct deposit. Your IRA is insured by the National Credit Union Administration (NCUA) separately from your savings account up to $250,000.
Earnings on a Traditional IRA grow tax-deferred until withdrawn. Contributions may be tax-deductible. The deductibility of these contributions may depend on your annual income and participation in an employer-sponsored retirement plan. We suggest contacting your tax accountant for deductible eligibility.
The IRS charges a 10% penalty fee for withdrawing all or any part of the account before the age of 59 1/2 unless exceptions apply.
Exceptions: Qualified higher education expenses, first time home purchase, age 59 1/2 , disability, qualifying medical expenses exceeding 7.5% of adjusted gross income, payment to beneficiaries upon owner's death, payment to health insurance premiums while unemployed for 12 weeks or longer.
The age limit for contributions into the Traditional IRA is 70 1/2. The Required Minimum Distribution for Traditional IRA funds begins at age 70 1/2.
Single and married taxpayers are eligible to contribute to a Roth IRA if your income is less than the limit set by Congress. We recommend contacting your tax accountant to determine your contribution eligibility. There is no age limit for making contributions to a Roth IRA.
Withdrawals from your regular contributions are tax-free. However withdrawals from your earnings are tax-free only if you have met two requirements:
- Your Roth IRA must meet the five year test, which means the withdrawal must be five years after the first year for which Roth contributions were made.
- One of the following conditions must apply: over age 59 ½, death, disabled or a first time home buyer (life-time limit $10,000 per person).
To learn what an IRA is in :90...watch this.