A full service financial
cooperative proudly serving
Federal employees in Wisconsin

Federated Family Credit Union
Phone: (414) 278-7220 
Fax: (414) 278-0890

Main Office
626 E. Wisconsin Ave., Ste 102
Milwaukee, WI

Reverse Mortgages = Senior Solutions
A Reverse Mortgage allows homeowners 62 years of age or older to convert their home's equity into cash. Click here to learn more.

Individual Retirement Accounts (IRAs)

Plan for a secure future with an Individual Retirement Account. We offer certificates with guaranteed rates from 6 to 60 months. IRA certificates automatically renew, and can be purchased with as little as $100.* 

• Traditional IRA contributions may be tax deductible and will earn tax-deferred interest until you begin making withdrawals. 
   
• Roth IRAs feature non-deductible contributions that earn tax-deferred interest; qualified withdrawals are tax-free as long as the account has been open for five years or more and the member is at least 59 ½ years of age. 
   
• Education IRAs allow you to deposit up to $500 annually for future education expenses of a loved one; qualified withdrawals are tax-free. 

Be sure to check with a qualified tax advisor or the Internal Revenue Service for complete rules for each type of IRA before investing.

The dividend rates and annual percentage yield offered may change every month as determined by the credit union's board of directors. A minimum average daily balance of $100 in your IRA is required to obtain the disclosed annual percentage yield. IRAs are insured to an additional $250,000 per depositor by the National Credit Union Administration (NCUA), a U.S. government agency. Penalties are imposed for early withdrawal of certificate funds.

* For those members who want to establish an IRA and make regular deposits in order to help their account grow, we offer a special IRA certificate option that may be initiated with as little as $100. You may add to the balance of this CD without advancing the maturity date or changing the rate. Penalties are imposed for early withdrawal of certificate funds.

Roth IRAs: Good for Young Savers

Although you fund a Roth IRA (individual retirement account) with after-tax dollars, the money you take out is completely tax-free as long as it meets certain requirements. You never pay a cent of tax on your earnings.

The Roth IRA is one of the few savings vehicles that gives you this advantage, and it's a big one. Suppose you put the maximum $3,000 per year into a Roth IRA for 25 years at a 3% return. You would end up with $112,659 -- $37,659 of which would be tax-free earnings! It's the magic of deferred compounding. (The annual contribution limit will revert back to $2,000 after 2010 unless Congress acts to extend it.)

The Roth is a great investment if you're just starting a savings plan, according to Dennis Zuehlke, compliance manager at CUNA Mutual Group in Madison, WI. 

Zuehlke adds that young savers are likely candidates for the Roth IRA's saver's credit, an extra tax bonus. This nonrefundable tax credit can total up to 50% of the first $2,000 you put into a Roth IRA each year. To qualify, you must be at least age 18, your income must be less than $50,000, and you can't be a full-time student or a dependent on someone else's tax return.

“Combine the saver's credit with all the other tax savings and it can really make a difference,” Zuehlke says.