IRAs
Helping you remove the quotes around "someday."
When it comes to planning and saving for the future, we're here to help make our members' aspirations possible by offering several IRA accounts that can be used towards retirement, investment, education or healthcare goals.
Individual Retirement Accounts
Invest in your future and enjoy tax advantages with our Individual Retirement Accounts (IRA). Whether you're just starting to save for retirement or looking to maximize your savings, we offer a variety of IRA options to suit your needs.
- Tax Advantages: Take advantage of tax-deferred growth or tax-free withdrawals, depending on the type of IRA you choose. Contributions may be tax-deductible, helping you save on taxes now or in retirement.
- Flexible Options: Choose from Traditional IRAs or Roth IRAs to meet your retirement savings goals. With options for both contributions and transfers, you can start saving for retirement at any stage of life.
- Competitive Rates: Earn competitive interest rates on your IRA contributions, allowing your savings to grow steadily over time. With compound interest, your retirement nest egg can grow significantly over the years.
- No Monthly Fees: Enjoy the benefits of saving for retirement without worrying about monthly maintenance fees. Our IRA accounts have no monthly service charges, so you can keep more of your savings working for you.
- Federally Insured: Rest easy knowing that your retirement savings are safe and secure. Our IRA accounts are federally insured up to the maximum allowed by the NCUA, providing added peace of mind.
WyHy IRA Options
Traditional IRA
Maximize your retirement savings with a WyHy Traditional IRA. Enjoy higher interest rates and potential tax-deductible contributions, depending on your income, marital status, and existing retirement plans.
Key Features:
- Low Minimum Balance: Open an IRA with just $50.
- Flexible Terms: Choose from terms ranging from 6 to 60 months.
- You're In Control Certificate: Our 30-month Traditional IRA is part of the You're In Control Certificate.
- Quarterly Compounded Dividends: Earn dividends accrued daily and compounded quarterly.
- Flexible Contributions: Make contributions anytime during the calendar year, up to April 15th of the following year. Contributions to term certificates can only be made at the initial deposit, while IRA Shares allow contributions up to the contribution limit throughout the year. A Smart Saver IRA allows contributions to the IRA at any point in the 15 month term.
- Boost Your Rate: Increase your rate with Smart Points*!
- Penalties for Early Withdrawal: Withdrawals before age 59.5 incur a 10% penalty and are taxed as current income. Additional penalties: 90 days interest for 3-12 months, 180 days for 12-36 months, and 365 days for 36-60 months.
Secure your future with WyHy's Traditional IRA and take advantage of competitive rates and flexible terms. Start planning your retirement today!
*must be a 24 month term or longer to boost the rate with Smart Points.
Roth IRA
Save for retirement, a first home, or medical expenses with WyHy's Roth IRA. Enjoy the benefits of less restrictive rules and tax-free earnings on contributions.
Key Features:
- Low Minimum Balance: Open a Roth IRA with just $50.
- Flexible Terms: Choose from terms ranging from 6 to 60 months.
- Tax-Free Contributions: Contributions are not deductible for federal income tax purposes but can be withdrawn at any time, for any reason, tax-free.
- No Early Withdrawal Penalty: Avoid the 10% penalty on early withdrawals (subject to conditions) when rolling a Traditional IRA into a Roth IRA. Note that the distribution will be considered income for federal tax purposes.
- Quarterly Compounded Dividends: Earn dividends accrued daily and compounded quarterly.
- Flexible Contributions: Continue contributing from earned income after age 70.5 without required distributions.
- Boost Your Rate: Increase your rate with Smart Points*!
Experience the flexibility and tax advantages of a WyHy Roth IRA. Secure your financial future and achieve your goals with ease.
*must be a 24 month term or longer to boost the rate with Smart Points.
SEP IRA
At WyHy Federal Credit Union, we offer Simplified Employee Pension (SEP) IRAs to help self-employed individuals and businesses contribute to retirement savings efficiently. SEP IRAs allow for significant tax advantages, making them an ideal choice for business owners and their employees.
Key Features:
- Flexible Contributions: Contributions to SEP IRAs can be made up until the tax return deadline for the prior year, allowing for strategic tax planning.
- Tax-Deductible Contributions: Contributions are deductible from income in the year they are paid, providing substantial tax benefits.
- Retirement Savings for All: SEP IRAs enable businesses to contribute to both the owner's and employees' traditional IRAs, fostering a supportive retirement plan for the entire team.
- Easy to Set Up: Setting up a SEP IRA is straightforward, making it a hassle-free option for retirement savings.
Empower your business and employees with the benefits of a WyHy SEP IRA. Secure a prosperous future for yourself and your team.
How to Open a WyHy IRA
By following these steps, you can easily open a WyHy IRA and start securing your financial future today.
Visit a WyHy Branch or Contact Us
Start by visiting your nearest WyHy Federal Credit Union branch or our website. Our friendly staff and online resources are available to help you get started with your IRA application.
Complete the Application
Fill out the necessary application forms. You will need to provide personal information, such as your Social Security number, and details about your employment and income.
Provide Required Documentation
Submit any required documents, such as identification and proof of income. For certain types of IRAs, you may also need to provide information about your existing retirement accounts.
Fund Your Account
Make an initial deposit to open your IRA. You can contribute through various methods, including payroll deductions, direct deposits, or manual deposits. Ensure your contributions adhere to the annual limits set by the IRS.
Start Saving Today
Secure your financial future and take control of your healthcare expenses with Individual Retirement Accounts (IRAs) from WyHy Federal Credit Union. With tax advantages, competitive rates, and flexible options, our IRA and HSA accounts provide the tools you need to achieve your financial goals.
IRA Questions
Can I withdrawal from a Roth IRA without penalty for any reason?
Withdrawing from a Roth IRA can sometimes incur penalties, but there are several exceptions that allow you to take penalty-free withdrawals. Here are the main reasons why someone could withdraw from a Roth IRA without facing a penalty:
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Qualified Distributions: These include withdrawals made after the account holder has reached age 59½ and the account has been open for at least five years.
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First-Time Home Purchase: You can withdraw up to $10,000 in your lifetime to buy, build, or rebuild a first home without penalty, provided the account has been open for at least five years.
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Disability: If the account holder becomes totally and permanently disabled, withdrawals can be made without penalty.
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Death: If the account holder dies, the beneficiaries can withdraw from the Roth IRA without penalty.
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Qualified Education Expenses: Withdrawals to pay for qualified higher education expenses for the account holder, their spouse, children, or grandchildren can be made without penalty.
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Medical Expenses: If unreimbursed medical expenses exceed 7.5% of your adjusted gross income, you can withdraw that amount without penalty.
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Health Insurance Premiums: If you are unemployed and have received unemployment compensation for at least 12 consecutive weeks, you can use Roth IRA funds to pay for health insurance premiums without penalty.
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Birth or Adoption: Up to $5,000 can be withdrawn without penalty for expenses related to the birth or adoption of a child, within one year from the birth or adoption date.
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Substantially Equal Periodic Payments (SEPP): If you take distributions as part of a series of substantially equal periodic payments (SEPP), you can avoid penalties. This is also known as the 72(t) rule.
It’s important to note that while these exceptions allow you to avoid the 10% early withdrawal penalty, any earnings withdrawn may still be subject to income tax if the account has not been open for at least five years. Always consult a financial advisor or tax professional to understand the implications of any withdrawal from your Roth IRA.
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*APY = Annual Percentage Yield. Consult a tax advisor for options and tax advantage qualifications. Federally Insured by NCUA.