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DCCU Routing # 251483311





Individual Retirement Accounts

Retirement Options

Your retirement shouldn’t be left to chance. DCCU’s Individual Retirement Account (IRA) options can help you get 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.


IRA Options

TRADITIONAL

Individual Retirement Account

Key Benefits & Features:

 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.

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

ROTH

Individual Retirement Account

Key Benefits & Features:

 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 59 ½ can make tax-free withdrawals after the account has been active for five years.

 First-time home buyers may withdraw fund 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 Roth IRAs or to open/manage an IRA account.

Simplified Employee Pension (SEP) Plans

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

  • A Simplified Employee Pension 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.
  • SEP plans are available to most types of businesses, including sole proprietorships, partnerships, corporations, tax-exempt entities, and state and local governments.
  • Your employer may require employees to meet certain criteria to be eligible.
  • You establish a SEP plan, an employer must sign a plan document. (Talk to your tax advisor for details).
  • The plan agreement outlines SEP plan eligibility requirements, contribution rates, and allocation method.
  • Each eligible employee is required to maintain a Traditional IRA to receive SEP plan contributions.
  • 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.
  • SEP plan contributions are reported separately from regular Traditional IRA contributions.
  • SEP plan contributions cannot be made to a Roth IRA.

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

Retirement Resources

Health Savings Account (HSA)

As health care costs increase, one option gaining popularity to manage health-related expenses is opting for a High Deductible Health Plan (HDHP), which then qualifies you for a Health Savings Account (HSA) to use to save for future qualified medical health expenses tax-free.

Accounts that can be used as HSAs include:

  • Rewards Checking with debit card
  • Money Market account
  • HSA Certificates - $1,000 minimum required to open a certificate, 1-5 year terms only
  • Club Savings accounts (excluding Christmas Club)
     

Member Investment Services

If you are contemplating your retirement options, it may benefit you to sit down to discuss them with one of our financial advisors. Member Investment Services (MIS) is here to help with your investment needs:

Retirement Planning

IRAs, 401(K), Education, & Annuities

Investment Products

Various products including Mutual Funds, Stocks, Bonds, Real Estate, and Insurance.

Tax-Advantaged Investing

Investments that provide tax benefits

Estate Planning

Developing a comprehensive plan to manage your assets

College Planning

Making a plan to finance your higher education goals

IRA FAQs

DCCU offers Traditional and Roth IRAs. 

IRA Share

Balances up to $999 earn dividends higher than regular savings rate

Balances above $1,000 earn slightly higher rate than IRAs up to $999

IRA Certificates

$1,000 minimum to open

1, 2, 2 ½, 3, 4, & 5 year terms available

Automatic renewal

Earns dividends

Early withdrawal penalties may apply

IRA Share & 1 Year Certificate

90-day dividend penalty

Under 59 ½ early withdrawal penalties may apply

Breaking the certificate before maturity penalties may apply

Moving IRA Shares or IRA Certificate penalties may apply when moving to another Financial Institution

IRA Certificates (2 Year - 5 Year)

180-day dividend penalty

Under 59 ½ early withdrawal penalties may apply

Breaking the certificate before maturity penalties may apply

Moving IRA Shares or IRA Certificate penalties may apply when moving to another Financial Institution

Yes – IRA funds are insured to $250,000 separately from other DCCU savings accounts.