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Individual Retirement Accounts

Plan for your Future

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Individual Retirement and Education Savings Accounts

Whether you are just starting to save for retirement or you are rolling money over from another retirement account, Fairfax County Federal Credit Union offers a variety of IRA options designed to help you meet your retirement and education financial goals. Consult your tax advisor regarding how the various IRAs relate to your tax situation.

We offer several types of accounts to help you maximize your IRA earnings with IRA Share Savings Accounts, Education Savings Accounts, Money Management IRAs, and IRA Certificates. You can view our rates here.

To open an IRA account or learn more about your options, please call 703-218-9900 option 3 or email memberservice@fairfaxcu.org.*

Traditional IRAs

The individual retirement account is a personal, tax-deferred account for people who are employed, and their spouses.Tax deductible contributions are allowed of up to $5,500 for members under 50 years old and $6,500 for members over the age of 50. 

Contributions generally reduce your total taxable liability. When the money is withdrawn, however, it is subject to income taxes as well as penalties if withdrawn before the retirement age of 59½.Traditional IRAs also require minimum required distributions at age 70½. 

Roth IRAs

A Roth IRA allows non-deductible contributions offering tax-deferred earnings. Distributions from your Roth IRA can be tax and penalty free as long as it’s been 5 years since your first contribution and there is a qualifying event such as reaching the retirement age of 59 ½. Members can contribute to Roth IRAs for as long as they like and there are no minimum required distributions with a Roth IRA.

Simplified Employee Pension Plans

SEP accounts follow the same contribution, distribution and rollover rules as traditional IRAs. This plan allows business owners a way to contribute toward their employees’ as well as their own retirement savings.

Coverdell Education Savings Account

Education Savings Accounts (ESA), formerly education IRAs, are for the purpose of funding education for a student and contributions are not tax-deductible. Earnings are tax-deferred and will not be subject to tax as long as the funds are not greater than the student’s educational expenses and are distributed to an eligible educational institute. Any money withdrawn that is not for the student’s educational expenses are subject to tax and penalty. If funds are not needed for educational expenses, they may be rolled into a qualified family member’s ESA. The maximum contribution for the year is $2,000 and may be made by any taxpaying family members or friends.

Your IRA and ESA Funds Are Safe

The National Credit Union Administration (NCUA) operates the National Credit Union Share Insurance Fund (NCUSIF) to protect accounts at federally insured credit unions up to $250,000. Traditional IRA accounts and Roth IRA accounts are added together and insured up to an additional $250,000. Coverdell Education Saving Accounts are insured as irrevocable trust accounts and will be added to a member’s other irrevocable trust accounts and insured up to $250,000.

Is retirement around the corner?

If you are getting close to retiring, finishing up the county DROP program, or moving jobs, you may be facing decisions about the money you have saved for your retirement.

If you withdraw the lump sum, the distribution is considered income and taxed as such. And if you are under the normal retirement age of 59 ½, your distribution may also be subject to an early withdrawal penalty. No matter the amount, cashing out your retirement plan puts you behind in your long term retirement savings goals.

FCFCU offers our members the option to rollover your employer’s retirement plan into an IRA. We are committed to making financial services and products available to keep our member’s retirement plans on track. Contact us at 703.218.9900 opt. 3 to speak with a specialist.

For more information about how your funds are insured, click here.

*Email is not a secure form of communication.  Personal information such as account number, date of birth, or social security number, should not be included in any email communications.

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