IRAs


An IRA is an investment account that belongs to you, to which you contribute. It can consist of stocks, mutual funds, bonds, annuities, certificates or other investment products. Gains grow tax deferred until they’re distributed. In some cases, they’re not taxed at all. Explore the features of both a Roth and Traditional IRA to see if an IRA is right for you. There is also an IRA calculator available to help you determine which type of IRA contribution is appropriate for you given your personal financial information, rate of return and years until retirement.
Potentially reduce the taxes you owe today and grow your money tax-deferred
 
Meet the eligibility requirements and you can deduct contributions to a traditional IRA from your federal taxable income, as well as from your taxable income in most states. This up-front tax break reduces the current income taxes you owe. Also, money in a traditional IRA accumulates tax deferred. You’ll eventually have to pay taxes, but not until you make a withdrawal.
  • You can contribute to your IRA any time during the year or by the due date for filing your tax return – always April 15 – extensions do not apply.
  • If you make early withdrawals before age 59 1/2, you’ll owe a 10% tax penalty on the taxable portion of the distributions. You’ll also owe income tax on your earnings and on any deductible contributions you made.
  • There are exceptions to the early withdrawal penalties: you have unreimbursed medical expenses exceeding 7.5% of your adjusted gross income, have health insurance premiums due to unemployment, are permanently disabled, have qualified higher education expenses, are a first-time homebuyer (lifetime limit of $10,000), or are the beneficiary of a deceased IRA owner.
  • By April 1 of the year following the year in which you reach age 72, you must either withdraw your entire balance or start taking required minimum distributions each year.

Financial Professional located at your credit union will show you how to get started on your IRA.