Individual Retirement Accounts (IRAs)

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It’s never too early to begin planning for the future.

A solid financial future begins with the right planning today, including Individual Retirement Accounts (IRAs). There are three types to choose from: a traditional IRA, a Roth IRA and a Coverdell Education Savings Account (CESA).

DuTrac members under the age of 70½ are qualified to open a traditional IRA if they’ve earned compensation (wages, salaries, tips, bonuses, or any other amount received from performing duties) during the year, and/or they are filing a joint income tax return with a spouse who has earned income compensation during the same year.

  • Contributions may be tax deductible
  • Dividends are paid quarterly and grow tax-deferred until withdrawn
  • No minimum deposit amount required
  • Early withdrawals are subject to 10% penalty unless disabled or paying for qualified expenses like a first home or education
  • Members 50 years old and over can make additional catch-up contributions
  • Funds can be used to purchase a first home
  • Funds can be used for qualified education expenses
  • Funds are automatically distributed at age 72


Contributions to a Roth IRA are not tax deductible, but this type of account shelters your earnings from income tax. It also offers more flexibility than a traditional IRA.

  • No minimum deposit amount required
  • Funds can be used for qualified education expenses
  • No distribution requirements
  • No requirement to withdraw at any age
  • Contributions can be made at any age, with qualified income
  • Contributions can be withdrawn at any time

Earnings can be withdrawn penalty free when:

  • The funds have been in the account for at least five years
  • You are older than 59½
  • You become disabled
  • You die and it is paid to your beneficiary
  • You use the money for a first-time house purchase ($10,000 lifetime withdrawal limit)


Saving for college, high school or elementary school expenses? A Coverdell Education Savings Account (CESA) or a traditional IRA might be right for you.

A CESA allows you to save for your child’s future educational needs. Unlike a 529 plan, a CESA can also be used for elementary and high school expenses at most public, private, and parochial schools.

The amount deposited is not tax deductible, but earnings grow tax-free. There are no taxes or penalties on withdrawals when used to pay for qualified educational expenses such as tuition, fees, books, supplies and equipment.


DuTrac Financial Group and First Community Trust also offer services and products to help grow your money.  DuTrac Financial Group services are offered to DuTrac Community Credit Union members through CUNA Brokerage Services, Inc., a broker/dealer focused on serving our personal members and business members. CUNA Brokerage Services, Inc. is an affiliate of CUNA Mutual Group.*


*DuTrac Financial Group’s Financial Professionals are registered representatives of CUNA Brokerage Services, Inc. Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty States of the United States of America.DuTrac Financial Group is offered through CUNA Brokerage Services, Inc.*, a broker/dealer focused on serving credit union members. CUNA Brokerage Services, Inc. is an affiliate of CUNA Mutual Group. For more information about CUNA Brokerage Services, Inc., please visit