ROTH IRA Accounts

• Roth IRA Application & Disclosures
• Roth IRA Brochure
• Roth IRA Beneficiary Change
• Roth IRA Direct Rollover
• Roth IRA Transfer
• Roth IRA Contribution Deposit
• Roth IRA Withdrawal

For more information or to open your IRA, please call our Member Services Department at (847) 670-0456, ext 1

Roth
$6,500, If Age 50 or older $7,500

2024 Contribution Limits
Traditional
$7,000, If Age 50 or older $8,000

Roth
$7,000, If Age 50 or older $8,000

Modified AGI limits apply, consult IRS Publication 590.

ROTH IRA Overview
Unlike contributions to Traditional IRAs, contributions to Roth IRAs are not tax-deductible. Instead, earnings grow tax-free and you pay no taxes when you withdraw the money provided it’s been in the account at least five years and you meet any of the following criteria:

• You are over age 59½
• You become disabled
• You die, and the funds are paid to your beneficiary
• Funds are used for a first-time home purchase ($10,000 lifetime limit)

How much can I contribute to IRAs this year?
Most people can contribute up to $7,000 or 100% of your taxable compensation for the year, whichever is less. The $7,000 limit applies to total contributions to all IRAs in the person’s name (Traditional and Roth). Singles can contribute up to $7,000 annually if income is less than $161,000. Contributions for singles start to phase out as income reaches above $161,000. Income limits run from $218,000 to $240,000 for married couples filing jointly. With Roth IRAs you don’t have to begin withdrawing money at age 70½, as is the case with traditional IRAs. You can leave your funds in your accounts, and earnings will grow tax-free for as long as you like.

Can I contribute more if I am 50 years of age or older?
If you reach age 50 before or during the year, you are permitted to play “catch-up” with your retirement savings by contributing up to $8,000 (an extra $1,000) The “catch-up” provisions apply to anyone who meets the age requirement and is otherwise eligible to contribute to an IRA.

What if I don’t have $7,000?
The law doesn’t require a minimum contribution. You can start an IRA at METRO Federal Credit Union with as little as $100. If your taxable compensation is under $7,000, you can contribute all or part of it to an IRA.

When can I contribute?
You can open an IRA, or contribute to an existing IRA, at any time. In order to apply to a given tax year, contributions may be made from January 1st of that year up to the tax filing day of the following year. The tax filing day is the normal tax deadline, even if you have received an extension beyond that date for filing your tax return. 

Can I transfer a Roth IRA from another fund company to METRO Federal Credit Union?
You can transfer a Roth IRA, or Traditional IRA, directly from one mutual fund company to another. To directly transfer an IRA from another company to METRO Federal Credit Union, please visit our Resource Center at www.mcu.org and select “IRA Transfer Form.”

What is a rollover?
Examples of a rollover are moving assets from a Roth IRA into another Roth IRA. You cannot roll over money from a 401(k) or 403(b) plan into a Roth IRA, but you may convert your rollover IRA into a Roth IRA if you are eligible to do so. For more information, including rollover contribution time limits, see IRS Publication 590.

METRO offers exceptional flexibility in meeting your investment needs. Once you have selected the type of IRA that’s best for you, choose from our two investment options.

IRA Savings

• Offer competitive variable rate
• Dividends compounded and paid monthly
• No minimum investment amount
• Additional deposits permitted at any time, up to your maximum yearly contribution
• Payroll deduction deposits
• Available as Traditional and Roth IRA
• Savings federally insured up to $250,000.

  IRA Certificates

• Offer competitive fixed rates
• Dividends compounded and paid monthly
• $1,000 minimum balance requirement for Traditional and Roth IRAs
• Savings federally insured up to $250,000.