Individual Retirement Accounts
Individual Retirement accounts are a great way to save for a more secure retirement. In most cases Social Security and pensions are not enough to maintain your current lifestyle. Wouldn't it be nice to know that you have the security of your own savings to use when you need it? At your hometown credit union, we offer Traditional IRA Accounts and Roth IRA Accounts.
The Roth IRA is an account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, members who expect to be in a higher tax bracket when they retire may benefit more from a Roth IRA than from a Traditional IRA. Unlike the traditional IRA, there is no requirement to begin taking distributions at age 72. This does not apply to individuals that turned 72 ½ in 2019.
A traditional IRA is a great way to grow your retirement nest egg by deferring taxes on earnings until they are withdrawn. This can save you hundreds of dollars in the long run by maxing out contributions to an IRA each year in comparison to dispersing funds to a regular savings account.
Need more information? Feel free to pop in to grab our brochures and ask our dedicated team!