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Alamo Federal Credit Union Share
Certificates, also known as Certificates of Deposit (CD’s), offer
risk-free savings options for our members. AFCU Share Certificates
require reasonable minimum balances to open, and offer higher
returns on dividends than regular share accounts. AFCU offers
flexible 6-month, 1 year, or 2 year terms on the Share Certificates.
Individual Retirement Account (IRA's)
Alamo Federal Credit Union offers two types of Individual
Retirement Accounts (IRA) as an excellent tool for long-term
savings: Traditional IRA and Roth IRA. Depending on the type of IRA
opened, the contributions to your retirement account may be tax
deductible and will grow either tax-deferred or tax-free. Alamo FCU
also offers a Coverdell Education Savings Account (ESA) (formerly
known as an Education IRA) as a way for parents or grandparents to
help meet the rising costs of college tuitions.
- TRADITIONAL IRA – A Traditional IRA account is opened
with annual contribution limits dependent on the year opened.
After 2008, the contribution limits will be adjusted annually for
inflation in $500.00 increments. Contributions are tax deductible
if account holder is not an active participant in an employer
retirement plan, and your investment will grow on a tax-deferred
basis. The earnings are taxed only upon withdrawal.
Click here for rates.
- ROTH IRA – A Roth IRA account can be opened as long as
there is earned income during the year, and can be contributed to
even after age 70 ½. The contributions are not tax deductible and
contributions and earnings can be withdrawn tax-free, and unlike
traditional IRA’s, there is no required minimum distribution after
reaching age 70 ½. An AFCU member can convert a TRADITIONAL IRA to
a ROTH IRA after 5 years, and enjoy tax-free withdrawals; however,
the amount that is converted is subject to income tax.
Click here for rates.
- COVERDELL EDUCATION SAVINGS ACCOUNT (ESA) – The annual
contribution after 2002 has increased to $2000.00 per beneficiary.
While there is no tax deduction for amounts contributed to an ESA,
earnings grow tax-free. Withdrawals are not allowed, unless a dire
medical emergency has occurred to the beneficiary. Since 2002, an
ESA can be used to pay qualified elementary school and secondary
school expenses, as well as those for higher education.
Click here for rates.
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