| Purpose |
Pre-tax retirement savings |
Post-tax retirement savings with more flexibility |
Traditional or Roth IRA with maturity terms up to 18 months |
Post-tax savings for future education expenses of someone under 18 |
High-yield, short-term certificate for members who want strong returns with limited liquidity and a defined maturity |
| Reason to Open This Account |
You plan to be in a lower tax bracket after retirement or exceed Roth IRA income limits and want withdrawal flexibility
|
You expect to be in the same or higher tax bracket after retirement and want flexible withdrawals
|
You want to earn a higher rate and don’t need withdrawal flexibility
|
Save and earn tax-free interest to help fund a child’s education
|
You want to earn a higher, promotional rate than a traditional IRA or CD, but still have one penalty-free partial withdrawal option if needed
|
| Eligibility |
- Individuals under age 70½
- No income limitations
|
- Individuals of any age
- Must fall below MAGI income limits
|
Subject to Traditional or Roth IRA eligibility
|
Beneficiary must be a qualifying family member under age 18
|
- DFCU membership required
- $2,000 minimum opening deposit
- New money from another financial institution*
- 10-month term
- Shield Elite members qualify for higher APY and waived new-money requirement
|
| Taxes |
- Tax-deferred growth
- Possible tax-deductible contributions
- Tax-deferred withdrawals
|
- Tax-free growth
- Potentially tax-free withdrawals
|
- Subject to Traditional, Roth, Coverdell, or SEP IRA tax rules
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- Contributions are post-tax; earnings grow tax-free when used for qualified education expenses
|
- Flex IRA follows Traditional or Roth IRA tax rules
- Early IRA withdrawals may be subject to IRS penalties
- Consult a tax professional before withdrawing
|