;
planning-for-retirement

It's never too early to begin thinking about retirement. No matter your age, CFE can help you establish a plan and begin saving actively to reach your retirement financial goals.

Retirement Services 

Let CFE help you assess your financial situation and create a working plan to begin saving at your own customized and comfortable pace. 


Traditional IRA Account

If you want to save money so you can enjoy retirement with less risk, a Traditional Individual Retirement Account (IRA) is a safe means to do so. Dividends are calculated from the date-of-deposit to the date-of-withdrawal, compounded daily, credited monthly, and there is no minimum balance required to earn dividends.

View Traditional IRAs
Roth IRA Account

If you are trying to save for retirement, then wait no longer. A Roth IRA is a safe and reliable retirement account. Plus, Roth IRAs generally offer better tax savings and more flexibility to make withdrawals than Traditional IRAs. Unlike a Traditional IRA, you cannot deduct contributions to a Roth IRA. Also, If you satisfy the requirements, qualified distributions are tax-free.

View Roth IRAs
Term Share Certificate IRA

Maximize the dividends on your retirement funds safely with an IRA Term Share Certificate. With at least $1,000, you can open an IRA Term Share Certificate and contribute pre-tax or after-tax dollars for additional retirement savings.

View Term Share Certificate IRAs

CFE Retirement Account Benefits

Planning for retirement with CFE gives you the flexibility to select the retirement account that's right for you. For your convenience, we offer various retirement account options.

 


Consider Your Options

Choosing the right retirement product or account is an important decision that requires an assessment of financial goals. The following product and accounts are available to you as a CFE Federal Credit Union member.

 

CFE Traditional IRA vs. Roth IRA Accounts

Compare these two popular retirement accounts to determine the right fit for you.

Traditional IRA
Roth IRA

Contribution Limits

$5,500 ($6,500, if age 50 or older)

$5,500 ($6,500, if age 50 or older)


Income Limits

Anyone with earned income can contribute but tax deductibility is based on income limits and participation in an employer plan.

Single tax filers with modified AGIs of less than $132,000 (phase-out begins at $117,000); married couples filing jointly with modified AGIs of less than $194,000 (phase-out begins at $184,000)


Tax Treatment

Tax deduction in contribution year; ordinary income taxes owed on withdrawals; beneficiaries pay taxes on inherited IRAs.

Tax-free earnings and tax-free qualified withdrawals in retirement. No withdrawals required during account holder’s lifetime; beneficiaries can stretch distributions over many years


Withdrawal Rules

Withdrawals are penalty free beginning at age 59 ½.

Contributions can be withdrawn at any time, tax-free and penalty-free. Withdrawal of earnings in your Roth IRA may be taxable or incur withdrawal penalties. After five years or reaching the age of 59 ½ (whichever is longer), all withdrawals are tax-free. 


Extra Benefits

Contributions lower taxpayer’s Adjusted Gross Income, potentially qualifying them for other tax incentives; up to $10,000 penalty-free withdrawals allowed to cover first-time homebuyer expenses, but taxes due on distributions.

After five years, up to $10,000 of earnings can be withdrawn penalty-free to cover first-time homebuyer expenses.


Contributions

Not Taxed

Taxed


Mandatory Age for Required Minimum Distributions

70 ½

N/A


Term Share Certificate

Available on both a Traditional and Roth IRA. Tax treatment is dependent on your choice of IRA. A penalty for early withdrawal may apply. Withdrawal penalty may be greater than interest earned. Funds are available at maturity. Benefits include:

  • Dividends are earned at a fixed rate
  • Dividends are compounded and credited monthly
  • No monthly service charge
  • Quarterly statements
  • Rates are tiered based on balance

Available on both a Traditional and Roth IRA. Tax treatment is dependent on your choice of IRA. A penalty for early withdrawal may apply. Withdrawal penalty may be greater than interest earned. Funds are available at maturity. Benefits include:

  • Dividends are earned at a fixed rate
  • Dividends are compounded and credited monthly
  • No monthly service charge
  • Quarterly statements 
  • Rates are tiered based on balance

Let us recommend a few more resources

MEMBERS™ Financial Services

The MEMBERS Financial Services program has one objective: to help you reach your financial goals. The program works in cooperation with the credit union to help you make sound financial and investment decisions. You’ll be able to work with a dedicated financial advisor, who can answer your questions and guide you to the right investment choices.

Contact an MFS advisor or attend a complimentary seminar to learn more.

Visit MEMBERS™ Financial Services


Know someone that is planning for retirement? Share this page with them.