Start Saving Like Never Before!
Traditional Share/Savings
A traditional savings/share account is a basic deposit account offered by ACT 1st FCU to help you save money by providing a safe place to keep your funds and earn interest on your balance. ACT 1st FCU aims to be your trusted source for lifelong financial services. To initiate your financial journey, the ideal starting point is a Traditional Savings Account. Upon meeting eligibility requirements, you can establish a Traditional Savings Account with only $5.00.
Traditional Savings Account Benefits
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Safety: Savings accounts at ACT 1st FCU is guaranteed by the National Credit Union Administration (NCUA) in the United States. Rest assured that your funds are protected by this federal agency.
Similar to the FDIC, the NCUA provides up to $250,000 in deposit insurance per account holder at ACT 1st FCU.
Easy Money Access: ACT 1st FCU members have the convenience of accessing their savings accounts at any time through our user-friendly advantage plus online banking service or mobile app.
Interest: Savings accounts earn interest on your balance that is calculated and paid to you on a regular based on your account’s interest rate. Dividends will be paid at a rate approved by the Board of Directors by vote at the monthly meetings. Dividends are paid on the average daily balance and posted on the last day of each month.
Traditional IRA Accounts
A Traditional IRA offers a robust way to build a steady, enduring savings strategy with tax-deferred earnings and potential tax-deductible contributions.
ACT 1st Federal Credit Union does not intend to offer tax advice. Please consult a tax professional for an interpretation of current figures, information and how these rules apply to you.
Traditional IRA FAQ
Who can contribute?
Anyone 72 who earns compensation from employment (or who is filing jointly with a spouse who earns compensation). Contributions cannot exceed compensation.
How much can I contribute?
For 2024, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can’t be more than:
$6,500.00 for Tax Year 2023 and $7,000.00 for Tax Year 2024.
If you are age 50 and older, your annual contribution limit is:
$7,500.00 for Tax Year 2023 and $8,000.00 for Tax Year 2024.
Many people can deduct contributions on their tax returns.
However, certain rules do apply.
When can I withdraw funds from the IRA?
In general, you must pay a 10% tax penalty on withdrawals before age 59½, but the early withdrawal tax does not apply in the following situations:
Withdrawal of up to $10,000.00 for a first-time home purchase.
Amount is used to pay for qualified post-secondary education expenses.
Distribution is for medical insurance premiums during unemployment that lasts 12 weeks or longer.
Distribution is to an owner who is disabled (as defined by the IRS code).
Amount is used to pay for medical expenses in excess of 10% of Adjusted Gross Income (AGI).
Payment is made to your beneficiaries after your death.
Payment of a federal tax levy.
Please consult a tax professional for a complete list of all exclusions.
When must I begin receiving distributions from my Traditional IRA?
You must begin receiving required minimum distributions from your Traditional IRA at age 72. The minimum distributions each year will be computed using an IRS formula.
You are allowed to delay the first year’s payment until April 1st of the following year, but you will receive two years worth of payments in that year if you choose to delay.
Please consult a tax professional for an interpretation of current figures, information and how these rules apply to you.
Roth IRA Accounts
Unlike Traditional IRAs, contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free. Of course, you must conform to certain tax requirements to get this tax-free advantage.
To be eligible for a Roth IRA at ACT 1st FCU, you must have a specific earned income amount and meet income requirements. The contribution limit for a Roth IRA is the same as a traditional IRA and is subject to annual adjustments by the IRS.
Roth IRA FAQ
Who can contribute?
Anyone who earns compensation from employment (or who is filing jointly with a spouse who earns compensation) with income less than or within the applicable IRS limits. Contributions cannot exceed compensation.
How much can I contribute?
If you are under age 50, your annual contribution limit is:
$6,500.00 for Tax Year 2023 and $7,000.00 for Tax Year 2024.
If you are age 50 and older, your annual contribution limit is:
$7,500.00 for Tax Year 2023 and $8,000.00 for Tax Year 2024.
Note: Contributions to a Roth IRA are never tax-deductible.
When can I withdraw funds from the Roth IRA?
You can withdraw regular contributions without paying income tax at any time. There are two requirements to qualify for tax-free withdrawals of the income your Roth IRA has earned. The Roth IRA must meet the Five-Year-Test. In other words, it must be five years after the first year for which Roth contributions were made.
One of the following conditions must apply:
You are over age 59½.
Funds are going to your beneficiary upon your death.
You have become disabled.
You are using the funds for a first time home purchase
What if I make a withdrawal from the Roth IRA and I am not age 59½ or covered by any exceptions?
Unless an exception applies, earnings distributed before age 59½ are subject to the 10% early distribution tax.
Do I have to receive minimum distributions at age 72?
No. Unlike the Traditional IRA on the Roth IRA you are not required to receive minimum distributions at age 72. If you don’t need the cash, you can let your money continue to grow tax-free for as long as you like.
Please consult a tax professional for an interpretation of current figures, information and how these rules apply to you.
Check out our rates here.
Certificates
A certificate account is a specialized savings account offered by ACT 1st FCU that provides members with a higher interest rate in exchange for committing funds for a fixed duration. These accounts represent a low-risk investment option, allowing you to earn more interest on your savings. Additionally, they are insured by the NCUA, ensuring that your funds are protected up to a specified limit.
When you establish a certificate account with ACT 1st FCU, you agree to maintain a designated amount of money in the account for a predetermined period. Terms can vary from a few months to several years, with longer durations typically offering more favorable interest rates.
With a range of terms and minimum deposit requirements, you are likely to find an option that suits your needs. Our Certificate Accounts, available in terms from 6 months to 5 years, provide a secure and beneficial savings solution.
Check out our Certificate rates here.
Dividend rates and annual percentage yield rates are subject to change without notice. The annual percentage yield (APY) calculation assumes dividends are compounded monthly and remain on deposit until maturity. Withdrawal prior to maturity date will result in a substantial penalty. For current dividend rates and annual percentage yield rates, please Call or Contact Us. This credit union is federally insured by the National Credit Union Administration (NCUA).
More Savings Options
Summer Savings Account
Perfect for educators and school employees who don’t receive paychecks during the summer!
For those employees who are on the 10-month payroll, the summer savings program is set up to automatically calculate the amount that will be set aside from each of your paychecks to make it through the dog days of summer in July and August. The member will not be permitted to take funds from the Summer Savings Account at any time.
Distribution will take place twice in July and twice in August. Summer Savings funds are not included in the share insurance evaluation. The member will be assessed a fee for early withdrawal. Yield is subject to change without notice.
Christmas Club
Don’t let the holidays surprise you!
A Christmas club account is a type of savings account offered by ACT 1st FCU to help you save for all your holiday expenses! When you open a Christmas club savings account, you agree to make regular deposits throughout the year. Specify the amount you wish to set aside from each pay by means of Direct Deposit or Payroll Deduction. The funds from your Christmas club account are automatically transferred to your main checking or traditional savings account just in time for the holiday season (usually October 1st)!
Christmas club savings accounts offer higher interest rates than traditional savings accounts and may offer bonuses or rewards for reaching certain savings milestones.
Upon meeting eligibility requirements, you can establish a Christmas Club Account and decide how much you want to tuck away for the holidays! Make regular deposits and start shopping for Christmas early to lessen the strain on your wallet during the holiday season.
Vacation Club Account
Save year-round for your next vacation!
Need to save for that dream vacation? It’s easy with our Vacation Club. Specify the amount you wish to set aside from each pay by means of Direct Deposit or Payroll Deduction and your dream vacation will become a reality.
Funds will be transferred to one of your primary accounts by June 1st of each year. Dividends will be compounded and posted monthly. There is no minimum balance or deposit required. The member will be assessed a fee for early withdrawal. Yield is subject to change without notice.
