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June 16, 2024
Motion Federal Credit Union

Individual Retirement Accounts

Individual Retirement Accounts (IRAs)

When planning for your retirement, a Motion Individual Retirement Account (IRA) is a great way to build your nest egg. Retirement Topics - IRA Contribution Limits | Internal Revenue Service (irs.gov). Motion offers several types of IRAs, including Traditional and Roth IRAs.

When planning for your retirement expenses, a Motion Individual Retirement Account (IRA) is a great way to build your nest egg. Motion offers several types of IRAs, including Traditional and Roth IRAs.

Traditional IRA

When you put your money in a Motion Traditional IRA, contributions may be tax-deductible (for many people) and it grows tax-deferred. The money is subject to income taxes at the time of withdrawal, which can begin when you’re age 59 ½. If your money is withdrawn before you’re 59 ½, you may be charged a penalty of 10%.

The penalty may be waived in certain circumstances.  Required Minimum Distributions (RMDs) are required at the age of 72 (73 if you reach age 72 after Dec. 31, 2022).

Roth IRA 

You can contribute after-tax dollars to a Motion Roth IRA. Your eligibility to open a Roth IRA and how much you can contribute is determined by your Modified Adjusted Gross Income (MAGI). If you are a single or joint filer, your maximum contribution starts to reduce at $129,000 and $204,000 for the tax year 2022 and $138,000 and $218,000 for the tax year 2023, respectively.

Contributions to a Motion Roth IRA can be withdrawn penalty-free and tax-free at any time. After the account has been opened for five years, you can withdraw the earnings tax-free and penalty-free when you’re 59 ½, or the withdrawal is considered a Roth IRA Qualified Distribution. Also, there are no mandatory withdrawals with a Roth IRA.

Coverdell ESA

A Coverdell Education Savings Account (also known as an Education Savings Account, a Coverdell ESA, is a tax-advantaged investment account in the United States designed to encourage savings to cover future education expenses (elementary, secondary or college), such as tuition, books, uniform, etc. It is found in section 530 of the Internal Revenue Code (26 U.S.C. 530)

The tax treatment of Coverall ESAs is much the same as that of 529 plans with a few important differences. Like a 529 plan, Coverdell ESAs allow money to grow tax deferred and proceeds to be withdrawn tax-free for qualified education expenses at a qualified institution. However, the definition of qualified expenses in an ESA includes primary and secondary school, not just college and university.


This material is for informational or educational purposes only and does not constitute fiduciary financial advice. This material does not take into account any specific objectives or circumstances of any particular member, or suggest any specific course of action. Investment decisions should be made based on the member’s own objectives and circumstances.


*Other restrictions apply.

ProductDividend RateAPY1
IRA 1.950% 1.9680%

IRA Share Certificates
ProductDividend RateAPY1
6-11 MONTH SHARE CERTIFICATE 3.250% 3.2990%
12-17 MONTH SHARE CERTIFICATE 3.750% 3.8150%
18-23 MONTH SHARE CERTIFICATE 3.850% 3.9190%
24-35 MONTH SHARE CERTIFICATE 3.950% 4.0220%
36-47 MONTH SHARE CERTIFICATE 3.600% 3.6600%
48-59 MONTH SHARE CERTIFICATE 2.950% 2.9900%

Federally Insured by the NCUA

Share insurance coverage is provided by the National Credit Union Administration (NCUA), an independent government agency that charters, regulates and insures federal credit unions. Your shares are backed by our solid financial standing. However, the insurance protects members against loss if a federal credit union fails

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