IRA & HSA Information

Individual Retirement Accounts (IRA)

Your retirement shouldn’t be left to chance. DCCU’s Individual Retirement Account (IRA) options can get you where you want to be with solid growth. Your annual contributions are based on federal regulations, which can change. Consult your tax advisor to determine which IRA is right for you.

Traditional IRA

  • You won't pay taxes on your earnings until you withdraw them.
  • Some of your contributions may be tax-deductible. (Talk to your tax advisor for details).
  • You can contribute money at any age, as long as you or your spouse have earned income.
  • You must start withdrawing money at age 72.

Roth IRA

  • You can contribute money at any age, as long as you or your spouse have earned income.
  • You won't pay taxes on your qualified withdrawals. (Certain tax requirements apply).
  • Members, age 59½ can make tax-free withdrawals after the account has been active for five years.
  • First-time homebuyers may withdraw funds tax-free for home purchases after the account has been active for five years.
  • There is no requirement for members age 72 to take distributions.

Visit Retirement Central to learn more about IRAs or to open/manage an IRA account.

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SEP Plans

Consult your tax advisor to determine if a Simplified Employee Pension (SEP) plan is right for you.

  1. A Simplified Employee Pension (SEP) plan is an employer-funded retirement plan that allows employers or self-employed individuals the option to make contributions into their own and each eligible employee’s Traditional IRA.
  2. SEP plans are available to most types of businesses, including sole proprietorships, partnerships, corporations, tax-exempt entities, and state and local governments.
  3. Your employer may require employees to meet certain criteria to be eligible.
  4. To establish a SEP plan, an employer must sign a plan document. (Talk to your tax advisor for details).
  5. The plan agreement outlines the SEP plan eligibility requirements, contribution rates, and allocation method.
  6. Each eligible employee is required to maintain a Traditional IRA to receive SEP plan contributions.
  7. SEP contributions go into your Traditional IRA. The Traditional IRA distribution rules apply, including the early distribution penalty tax and the required minimum distribution (RMD) rules. Any amounts distributed generally are taxable to you.
  8. SEP plan contributions are reported separately from regular Traditional IRA contributions.
  9. SEP plan contributions cannot be made to a Roth IRA.

Visit Retirement Central to learn more about SEP Plans or to open/manage a SEP account. 

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Health Savings Account (HSA)

A Health Savings Account (HSA) gives you the opportunity to pay for your medical expenses with a tax-free savings account. DCCU’s HSA can help by providing an economical way for you to save for medical costs. Consult your tax advisor if you have any questions.

How HSAs Work:

  • Save Time – You own the account, so it goes where you go, regardless of any job changes. Also, you can contribute at any time during the year and your balance rolls over from year to year.
  • Save Money – Your ability to deduct your contributions and the tax deferral of account earnings enable you to build your account. High health insurance policy deductibles mean lower premiums.
  • Protect Your Money – You will have an opportunity to save money to pay high or unexpected medical bills.

HSA Benefits:

  • Tax-free employer contributions
  • Possible tax-deductible contributions
  • The assets of an HSA are carried over from year to year.
  • The interest or other earnings in the account are tax-deferred.
  • Distributions are tax-free if they are used to pay qualified medical expenses not covered by insurance.

You may be eligible for an HSA account if:

  • You are covered by a qualified High Deductible Health Plan (HDHP).
  • You do not have a Flexible Spending Account (FSA) through your employer or other plans that pay medical expenses.
  • You cannot be enrolled in Medicare.
  • You cannot have received VA medical benefits in the previous three months.
  • You cannot be claimed as a dependent on another person’s taxes.
  • You (the HSA Holder) are required to track and record all distributions.

View HSA fees here.

Visit Retirement Central to learn more about HSAs or to open/manage an HSA account. 

A separate account will need to be opened for the HSA prior to opening/managing an HSA account in Retirement Central.

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