IRAs
Individual Retirement Accounts
Secure your future with Family First’s flexible retirement plans, offering investment options free from maintenance fees, commission costs, and market fluctuations. Manage your account from anywhere with our secure online IRA portal and choose from risk-free savings options like IRA Savings, Certificates of Deposit, and MoneyBuilder accounts to build the retirement you deserve!
Secure Online Portal
Family First has partnered with Superior IRA & HSA to develop a secure online portal for you to manage your IRA yourself, no matter where you are!
The first time you use this portal, you’ll go through an identity verification process and will be required to create a new password. When verifying your identity, be sure to use the email address you currently have on file with Family First.
Ways to Save
Members can take advantage of additional risk-free investment options, including:
- IRA Savings
- IRA Certificates of Deposit
- IRA MoneyBuilder accounts
With Family First, your retirement funds are not subject to maintenance fees, commission costs, or market fluctuations, and are insured up to $250,000 by the NCUA.
Which IRA is right for you?
A Roth IRA is an excellent choice if you don’t need a tax break right now. It offers more flexibility because you can withdraw regular contributions at any time, tax-free and penalty-free. Plus, a Roth IRA provides additional flexibility during retirement, as there is no mandatory distribution age.
ANNUAL CONTRIBUTIONS
- Contributions are not tax deductible
- For 2025, the maximum contribution limit is $7,000 or the total of your taxable compensation for the year, whichever is lower
- A catch-up provision allows individuals aged 50 or older to contribute an extra $1,000 annually
- No Required Minimum Distribution (RMD)
DISTRIBUTIONS
- Distributions are tax-free and penalty-free if:
- You are 59½ and the account has been open for at least five years
- Due to disability
- To your beneficiary upon your death
- For first-time home buyer expenses (up to $10,000)
- For higher education (expenses are taxed as ordinary income, but are not subject to a 10% early withdrawal penalty)
A Traditional IRA is an excellent choice if you want a tax deduction now or if you anticipate being taxed at a significantly lower rate in retirement. Earnings accumulate tax-deferred until withdrawn and are then subject to income tax based on your tax rate at the time of withdrawal.
ANNUAL CONTRIBUTIONS
- All or part of contributions may be tax deductible, depending on your income and filing status
- Earnings accumulate tax-deferred until withdrawn
- For 2025, the maximum contribution amount is $7,000 or the total of your taxable compensation for the year, whichever is lower
- A catch-up provision allows individuals aged 50 years or older to contribute an extra $1,000 annually
DISTRIBUTIONS
- Distributions of earnings and deductible contributions are taxed as ordinary income
- Distributions can be made:
- At age 59½
- Due to disability
- To your beneficiary upon your death
- To pay for qualifying medical expenses, including health insurance premiums while unemployed for 12 weeks or longer
- To pay for qualified higher education expenses
- For first-time home buyer expenses (up to $10,000)
- Required Minimum Distribution (RMD) begins at age 73
A Roth Conversion allows you to transfer money from a traditional retirement account, like a 401(k) or Traditional IRA, into a Roth IRA. This means you pay income taxes on the converted amount upfront, but all future earnings and qualified distributions are tax and penalty free.
ANNUAL CONTRIBUTIONS
- The entire amount transferred in the conversion is considered taxable income for the year
- Additional contributions are the same as Roth IRAs (see the Roth IRA section above for contribution details)
DISTRIBUTIONS
- Earnings and qualified distributions are tax/penalty-free
- Distributions are treated the same as Roth IRAs (see the Roth IRA section above for details)
A Simple IRA (Savings Incentive Match Plan for Employees) is a type of retirement savings plan designed for small businesses with 100 or fewer employees. It’s easy to set up and manage, with fewer rules than traditional 401(k)s. It’s called “simple” because it has less paperwork and lower costs compared to other retirement plans.
There are additional limitations, including lower contribution limits and less diverse investment options. These limitations make SIMPLE IRAs best suited for small businesses looking for an affordable, easy-to-manage plan.
ANNUAL CONTRIBUTIONS
- Employees can contribute money from their paychecks (pre-tax) into the plan, helping them save for retirement.
- Employers must either match employee contributions (up to 3% of their salary) OR make a fixed contribution of 2% of each employee’s salary, even if the employee doesn’t contribute
- Employers can make tax-deductible contributions to the plan
- Assets grow tax-deferred until withdrawn
- Participants are 100% vested
DISTRIBUTIONS
- Distributions are treated like Traditional IRAs, earnings are tax-deferred until withdrawn (see Traditional IRA above for details)
A Simplified Employee Pension (SEP) is a retirement savings plan that small companies often offer to their employees and is ideally suited for the self-employed. Participants are 100% vested with this account, and IRS Form-5500 is not required to be filed.
ANNUAL CONTRIBUTIONS
- Employers make tax-deductible contributions to each participant’s SEP IRA
- The contribution limits are the lesser of 25% of income OR the maximum of the annual contribution limit
DISTRIBUTIONS
- Distributions from a SEP are treated the same as distributions from a Traditional IRA or corporate pension, earnings are tax-deferred until withdrawn (see Traditional IRA above for details)
The Coverdell Educational Savings Account (ESA) allows you to save for your children’s future educational expenses. These accounts can be set up for anyone under the age of 18 and the funds saved in an ESA can be used for elementary, secondary or post-secondary education expenses.
With a Coverdell ESA, you can make annual after-tax contributions for a designated beneficiary. Although the contributions are non-deductible, the account will continue to grow tax-free. Qualified withdrawals are tax-free.
ANNUAL CONTRIBUTIONS
- The maximum annual contribution is $2,000 for the designated beneficiary
- Contributions can be made until the designated beneficiary turns 18 years of age
- Funds may come from multiple parties (parents, grandparents, etc.)
- The account is in the name of the designated beneficiary
- Funds can be rolled over to a designated family member under the age of 30 if not used by the original named beneficiary
- Earnings are taxed if funds are used for non-qualified educational expense
DISTRIBUTIONS
- Distributions are allowed for qualified expenses, such as:
- Tuition
- Academic Tutoring
- Books
- Room & Board (and supplies)
- Qualified schools include:
- Colleges &. Universities
- Vocational Schools
- Elementary & Secondary Schools (K-12)
- May be public, private, or religious schools
