Individual Retirement Account

DHCU offers the perfect supplement to any pension or retirement plan. Our Individual Retirement Account offers high tax-deferred dividends and possible tax benefits, plus you don't pay any account management fees. Earn daily interest and deposits can be made through payroll deduction, regular deposits, or in one contribution.

An IRA is simply a tax-deferred retirement savings plan that can be opened by anyone with earned income under age 70 1/2. The taxes on your deposits and the dividends they earn are deferred until you withdraw the funds, usually after age 59 1/2. In some cases, your IRA deposits are tax deductible from your gross income. This is determined by your income level and whether you participate in an employer pension or profit-sharing plan. Either way, your taxes will be deferred until you withdraw the funds. Ask your tax advisor for full details.

Roth IRA
A Roth IRA is a non-deductible IRA that provides tax-free earnings. If a Roth IRA has been open for at least 5 years, withdrawals would be tax-free and penalty free if you are 59 1/2 or older, or if the money is used for a first time home purchase (up to a lifetime limit of $10,000 per IRA holder).

Created as part of the Taxpayer Relief Act of 1997, the new Roth IRA has great benefits:

• It has a tax structure unlike that of any other IRA: contributions are post-tax, but growth is tax-free; once you put your money in, you never pay taxes again.
• It offers simpler distribution requirements: since you have already paid taxes up front, there are no minimum distribution requirements.
• Since withdrawals are not reportable income, they won't affect your adjusted gross income during retirement.

Coverdell IRAs
It's sole purpose is to help pay for your child's education cost which can include public, private, or parochial institutions for elementary, secondary or post-secondary expenses. It cannot be used as a retirement savings plan.

Coverdell IRAs allow you to invest up to $2000 per year per child, up to age 18, unless the child is a special needs student. Funds must be used by the child's 30th birthday or rolled over to another family member's Education Savings Account.

As with Roth IRAs, the money invested in Coverdell IRAs is not deductible- however, earnings are tax-free if used for a qualified education expense such as books, tuition, supplies, or computers.

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*Consult your tax advisor for more information.