IRA's

Carolina Cooperative Credit Union offers you the following Individual Retirement Accounts (IRA's) to help you reach your retirement goals:

Traditional

Roth

Education

Insurance coverage has been increased to $250,000 for Traditional & Roth IRA's. Effective 04-01-2006

Naturally, IRA's are governed by the Internal Revenue Service in all financial institutions. Some features of IRA's are:

TRADITIONAL - A traditional IRA allows you to defer taxes on your earnings (deductible or non-deductible) until you withdraw the funds. Also, certain contributions are tax deductible* in the tax year for which they are made. If you are under age 70 1/2 for the entire year and have compensation, you are eligible to establish an IRA. You may normally contribute up to 100 percent of your compensation or $4,000, whichever is less. You must start withdrawing funds once you reach age 70 1/2.

ROTH - This relatively new IRA allows all earnings to grow tax-free and a big benefit is that there is no age in which you must begin distributions. This IRA is not tax-deductible. However; the IRS has made provisions for tax-free withdrawals for certain distribution reasons after a five-year holding period.

EDUCATION - This IRA allows you to save for upcoming educational expenses for your children. The maximum allowed deposit per child per year is $2000 from all sources. The contribution is not tax-deductible. However; earnings grow tax-free and you pay no taxes or penalties on funds withdrawn to pay for qualified higher education expenses, such as tuition and fees, before the child reaches age 30.

Within the different types of IRA's offered, we also provide you with several choices regarding how you wish your funds to be invested:

IRA Accumulation (Savings) Account (no minimum deposit)

3-60 Month IRA Certificates (only $500 minimum deposit)

Jumbo Certificate ($25,000 | $50,000 | $100,000 minimum deposit)

Members find the IRA Accumulation (Savings) Account is a perfect vehicle for receipt of recurring Payroll Deductions (or Direct Deposits). If you're trying to reach a specific goal in a given year, this is the account for you! Once you reach your goal, you can either leave your funds in this account at a very competitive dividend rate, or you can have us transfer your balance into an IRA Certificate.

CCCU offers 3-60 Month IRA Certificates for those who don't mind 'tying up' their funds for a specific time period in trade for a higher rate than is offered by our IRA Accumulation Savings account or by our competition. Afterall, aren't IRA funds of a 'permanent'nature? Only $500 is needed to open the account. IRA Certificates are perfect vehicles for receipt of 401(k) payouts or lump-sum rollovers or transfers from other institutions. Additional deposits are permitted during the life of the certificate without changing the rate or maturity date. However; members also have the option of increasing their certificate rate to the current rate being offered one time during the life of the certificate. Dividends are posted to the account monthly.

Jumbo IRA Certificates are also available at great rates, with a $25,000 | $50,000 | $100,000 minimum deposit. Many other institutions require a minimum of $100,000. Compare our jumbo IRA rates to those of our competition!

Terms and conditions of CCCU's IRA certificates are printed in our Certificate Disclosure Agreement Forms and other related paperwork. Fees are imposed by CCCU for early withdrawal, and you also need to be aware of IRS regulations regarding taxes and or penalties. Copies of Fees, Disclosures and IRS regulations may be obtained from any of our branch locations.

We will notify you of your impending maturity date in plenty of time for you to think about your options. And, if your obvious choice is simply to re-invest at our current rate, you don't even have to get back to us. We'll take care of renewing your IRA CD automatically if we don't hear from you!

Call any branch today for details!