Individual Retirement Accounts (IRAs)
MSUFCU has the long-term savings options to help you save for retirement, higher-learning, or health care expenses. View current dividend rates.
Coverdell Educational Savings Accounts, Health Savings Accounts, Traditional IRAs, Roth IRAs, and SEP Plan IRAs are insured for an additional $250,000.
A Traditional IRA allows for tax deferred growth of contributions and earnings to be tax deferred until you withdraw them at retirement, when you may be in a lower tax bracket. Contributions can be made if you are under age 70½ for the tax year that you are contributing and have earned income. Traditional IRA owners must begin taking distributions when he/she is 70½ years of age.
|Tax Year||Contribution Limit|
|2014||$5,500 ($6,500 for catch-up contributors age 50 and over)|
|2015||$5,500 ($6,500 for catch-up contributors age 50 and over)|
Open a Traditional IRA
Open a Traditional IRA at any MSUFCU branch, or visit our IRA Service Center by clicking the button below.
Legislative changes to Michigan’s income tax withholding laws became effective on January 1, 2012. As an IRA holder, you may be affected by these laws.
The Michigan Income Tax Act is requiring taxpayers, who are legal residents of Michigan and are born on or after January 1, 1946, to withhold 4.25% of all Traditional and Roth IRA withdrawals for the purpose of state income tax. As the custodian of your IRA, the MSUFCU is required by law to send these funds to the State of Michigan.
If you are eligible to have a withholding rate other than 4.25% withheld or you elect not to have state income tax withheld on your IRA disbursements, you will be required to complete form MI W-4P and return it to the Credit Union in advance of the withdrawals. For more detailed information, visit the Michigan Department of Treasury 2012 Pensions Withholding Guide. An updated version of the MI W-4P can be found here.
You may qualify for personal exemptions that would reduce the amount required to be withheld. In addition, you may elect not to have state income tax withheld from your distributions and may choose to make estimated tax payments. There may be penalties for not paying enough state income tax during the year, either through withholding or estimated tax payments. Please consult the advice of a professional tax consultant to determine your options.