Individual Retirement Accounts (IRAs) and Coverdell Education Savings Accounts (CESAs)

MERCO offers IRAs and IRA Certificates. Open an IRA with as little as $50. Choose from Traditional or Roth IRAs and enjoy tax benefits (consult your tax advisor). MERCO also offers Coverdell Education Savings Accounts (CESA).

An IRA or CESA from MERCO can provide for you and your family’s future security while earning high, tax-deferred dividends. You can start an IRA with just $50 and add to it in small amounts each month through payroll deduction or automatic transfer. Most members can deduct all or part of their annual IRA contributions from their taxes each year.

You can choose from three types of IRA accounts. Be sure to check with your tax advisor to determine which type of IRA best meets your needs:

Traditional IRA allows tax-free contributions up to $5,000 for 2008 and 2009. If you’re 50+, you can contribute an additional $1,000 each year. Your dollars may stay in the account until you reach age 70 ½.

Roth IRA is a non-deductible IRA that provides tax-deferred earnings and tax-free distributions (withdrawals). It allows the same contribution limits as the Traditional IRA. You can withdraw funds from your Roth IRA when you’ve held it for five years, but check with your tax advisor regarding circumstances and tax liability.

Coverdell Education Savings Account, formerly Education IRAs, allows non-deductible contributions of $2,000 per tax year per child. Qualified distributions (withdrawals) are tax-free and penalty-free.

IRA Certificates allow you to lock in higher dividends by choosing a term of 6, 9, 12 or 24 months. You can open an IRA Certificate with as little as $1,000.

Your IRA is secure and risk-free because it is insured for at least $250,000 by the National Credit Union Administration (NCUA), a U.S. Government agency.

At MERCO CU you are not just a depositor, you are an owner!


Fees and Disclosures