You are here

Individual Retirement Accounts

An Individual Retirement Arrangement (IRA) Account is an excellent tool for retirement savings. Unlike most investments, depending on the type of IRA you choose, contributions may be tax deductible and will grow either tax-deferred or tax-free.

Cooperative Federal offers Traditional IRAs, Roth IRAs, and SEP IRAs. IRAs are available as share accounts or certificates. View current rates and standard account terms.

Types of IRAs

Thinking of opening an IRA and don’t know which one is best for you? The information below provides a summary of the differences.

For more information about IRAs, contact:

  • Gerry Russo, Operations Assistant, (315) 473-0210 or gerryrusso@coopfed.org (Wed. - Fri.)
  • Leyanis de la Peña, Member Service Lead, (315) 473-0282 or leyanisdelapena@coopfed.org (Mon. - Fri.)

The following information is not intended as tax advice. Please consult a tax professional for specific tax information.

Traditional IRAs

Who Can Contribute?

Anyone under age 70 ½ who has income from compensation, or who is filing jointly with a spouse who has income from compensation, can contribute to a Traditional IRA.

Tax Advantages

Money in a Traditional IRA grows tax-deferred and is taxed when withdrawn. If you withdraw the money before age 59½, you generally must pay a penalty, subject to certain exceptions. Exceptions include disability, death, and first-time home purchase, with a lifetime limit for exemption on first time home purchase of $10,000. If you think your tax rate in retirement will be lower than it is now and you do not plan to withdraw the money before age 59½, a Traditional IRA may be a good choice for you.

Contribution Deadline

Traditional IRAs must be opened or funded by the April 15 tax filing deadline to receive deductions. A filing extension won’t buy extra time.

Roth IRAs

Who Can Contribute?

Roth IRA contributions can be made by anyone who has income from compensation, or who is filing jointly with a spouse who earns compensation, within certain IRS income limits for Modified Adjusted Gross Income (AGI). See IRS guidelines for the current year's Modified AGI limits.* 

Tax Advantages

Money in a Roth IRA is not federally taxed when it is withdrawn, and you can withdraw your contributions at any time without paying a penalty. If you think that when you retire your tax rate will be higher and/or you might need the money before age 59½, a Roth IRA might be a wise choice for you to consider. Early withdrawal of earnings may be subject to penalties or taxes.

Contribution Deadline

Roth IRAs must be opened or funded by the April 15 tax filing deadline to receive deductions. A filing extension won’t buy extra time.

SEP IRAs

A Simplified Employee Pension Plan, commonly known as a SEP-IRA, is a retirement plan specifically designed for self-employed people and small-business owners.

Who Can Contribute?

You can establish a SEP-IRA if you

  • are a sole proprietor, a memer of a partnership, or a business owner of either an unincorporated or incorporated business, including Subchapter S corporations; or
  • earn any self-employment income by providing a service, either full-time or part-time, even if you are already covered by a retirement plan at your full-time job.

Tax Advantages

Tax-deductible SEP-IRA contributions can equal up to 25% of the account holder's annual compensation, not to exceed limits set annually by the IRS. See IRS guidelines for the current year's SEP-IRA contribution limits.* Any investment earnings grow tax-deferred until withdrawn.

Contribution Deadline

SEP-IRAs must be opened or funded by the April 15 tax filing deadline to receive deductions.

*Cooperative Federal is not responsible for content on outside websites.