IRA and ESA Accounts

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Individual Retirement Accounts (IRAs) and the Coverdell Education Savings Accounts (ESA)

Communication Federal Credit Union offers Traditional and Roth IRAs as well as the Coverdell Education Savings Account (ESA). These accounts provide you with tax-advantaged* options when saving for retirement or a child's education. If you haven't thought about an IRA or ESA as a great tool for saving lately, visit your nearest CFCU branch to learn about the options. All CFCU IRAs and ESAs are federally insured.

IRA Share Accounts*

Individual Retirement Accounts (IRAs) are a popular method of saving for retirement. Any member of Communication Federal Credit Union with at least $5 in a share account can set up an IRA if they have taxable compensation during the year. Call Communication Federal Credit Union for more details or visit your local branch.

More information IRAs:

  • $250 minimum opening balance
  • One-time $10 origination fee
  • Dividends paid on a tiered balance schedule
  • Dividends compounded and paid monthly on the daily balance for that period
  • Regular IRA rates may change monthly

You may find it beneficial to open a Communication Federal Credit Union IRA share certificate which enables you to "lock in" a dividend rate for a period of time. IRA share certificate rates are the same as our regular certificate rates. Otherwise the account works like a regular IRA.



  • Annual contribution limit of $2,000 per child, per year
  • Maximum allowable contribution can be made for each child in a family
  • Contributions are not tax deductible
  • No taxes paid on the principle or earnings when withdrawn for qualified education expenses
  • Disbursements may be used for any qualified education expense, expanded to include eligible elementary and secondary expenses, as well as post-secondary education
  • Contributions can be made until the child reaches his/her 18th birthday (age limit may be extended in cases where the child has special educational needs)
  • Funds may be transferred to another child in the family if not used by the original beneficiary

*For information on the tax ramifications of these accounts, please consult your tax advisor.

If you'd like more information about Communication Federal Credit Union's IRA or ESA products please visit your local branch or call us at 800.522.3535.