Individual Retirement Accounts (IRAs)
How You Can Benefit from a Credit Union IRA
At different stages in your life, you face different financial needs. Whether you want to start saving for your future, avoid taxes on a pension plan payout *, or protect a lifetime of savings, a credit union IRA may be the right solution. Besides flexibility, IRAs offer advantages over other savings options, such as the opportunity for tax-deductible contributions or tax-free earnings. (*Note: if you take a lump-sum payment directly from your plan, 20% of it will be withheld for federal taxes. With a direct rollover of your payout to a credit union IRA, you can avoid income taxes as well as the 10% early distribution tax on most withdrawals if you are under age 59 ½.)
Save with an IRA – and Start Early
You can’t depend on Social Security and pensions to bankroll your future. That’s why you need to build your personal savings with a credit union IRA.
It’s never too early or too late to start saving for your retirement. Most individuals can deduct at least a portion of their annual IRA contribution from their taxable income each year.* For those unable to deduct their annual contribution, an IRA still remains one of the best methods to save towards retirement. Since IRA earnings are sheltered from taxes, IRAs grow faster than ordinary savings accounts. (*Consult your tax advisor for further information.)
The NBC (NY) EFCU offers 3 ways to contribute to an IRA. An IRA Share Account can be opened for just $100, and you can add to it anytime – either with additional deposits, rollovers from existing IRAs, or through payroll deduction. An IRA Share Certificate can be opened for just $1,000 with higher yielding, tax-deferred dividends.
Consolidate Your Funds into an IRA
Retirement is a time for rest and relaxation, not fussing over your finances. By consolidation your retirement funds into a credit union IRA, you’ll find it easier to enjoy your golden years. A credit union IRA is safe and will protect the money you’ve worked so hard to save. Reducing investment risk is important as retirement nears. Also, with all your funds at your credit union, you can perform all IRA transactions – such as taking distributions, naming beneficiaries and more – in one place. You can work one-on-one with the same friendly, helpful staff person.
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