Savings

University of Michigan Credit Union has savings options to help you make the most of your money. Whether you're looking for a basic savings account, saving for retirement or your next big purchase, UMCU has accounts to fit your needs.

 Fee Schedule

Choosing the IRA that's Right for You

What is the difference between a Traditional and a Roth IRA? The chart below will explain. For more information about IRAs, see your credit union IRA specialist. Be sure to seek the advice of a tax professional if you need more specific tax information.

  Traditional IRA Roth IRA
Income Limits for Contributions No income limits.

You can contribute at any age if you (or your spouse if fiing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts.

Contribution Limits

The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

  • $5500 (for 2015 and 2016), or $6500 if you are above age 50 or older by the end of the year; or
  • Your taxable compensation for the year

The most you can contribute to all of your traditional and Roth IRAs is the smaller of

  • $5500 (for 2015 and 2016), or $6500 if you are above age 50 or older by the end of the year; or
  • Your taxable compensation for the year
Age Limit on Contributions The year you reach age 70 1/2. No age limit.
Age for Required Distributions The year you reach age 70 1/2. No mandatory withdrawals.
Withdrawal Penalties There is a 10% penalty on withdrawals prior to age 59 1/2 except for withdrawals due to:
• Death
• Disability
• Pre-59 1/2 periodic payments
• Qualifying medical expenses
• Health insurance premiums while unemployed
• Withdrawals up to $10,000 toward the purchase of a first home
• Conversion to a Roth IRA
• Higher education expenses (for owner, spouse, children or grandchildren)

The portion of a withdrawal that is the return of non-deductible contributions is not subject to tax or penalty.

There is a 10% penalty on withdrawals prior to age 59 1/2 except for withdrawals due to:
• Death
• Disability
• Pre-59 1/2 periodic payments
• Qualifying medical expenses
• Health insurance premiums while unemployed
• Withdrawals up to $10,000 toward the purchase of a first home
• Higher education expenses (for owner, spouse, children or grandchildren)

Withdrawals of regular contributions are not subject to tax or penalty.

Can I claim my contribution as a deduction on my tax return?

You may be able to deduct some or all of your traditional IRA contributions. The deductible amount could be reduced or eliminated if you or your spouse is already covered by a retirement plan at work.

You can't deduct your Roth IRA contribution.

 

IRS regulations require that you have earned income or that you file your tax return jointly with someone who has earned income in order to make contributions (deposits) to an IRA. There is no minimum age requirement.

Please see our rate sheet for current rates, call us at 734-662-8200 or 800-968-8628 for an IRA application packet, or stop by any of our branches for details.

Investments are available from 12 months to 60 months. Roth and Traditional IRAs (either $500 or $10,000 minimum to open). Loss of 90 days interest if funds are withdrawn before maturity.

University of Michigan Credit Union is required to withhold Michigan state income tax on certain IRA distributions. Distributions from IRAs are subject to Michigan state income tax withholding at a rate of 4.25 percent of the gross distribution amount. You may qualify for personal exemptions which would reduce the amount to be withheld. Additionally, you may elect not to have state income tax withheld from your distributions or make estimated tax payments. Please note that you may be subjected to penalties and/or interest if you elect to opt out of state withholding at the time of withdrawal. Please consult your tax advisor to determine your options.

To opt out of state withholding or to be eligible for a withholding rate other than 4.25 percent, you must fill out this form and provide it to the credit union. Click here for more information.

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All UMCU offices will be closed on Monday, May 30th. You may access your account through mobile and online banking.
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734-662-8200 or 800-968-8628