Save today - enjoy tomorrow:)
It's your retirement and it's your choice how to prepare. First Credit Union offers both Traditional and Roth individual retirement account options. Read on to learn about some of the unique tax advantages of each.
Are you under age 70½ with earned income or file jointly with a spouse with earned income? Or have you received a distribution from a qualified retirement plan and want to move the proceeds into a retirement savings account? A Traditional IRA might be right for you. Benefits include:
- Earnings grow tax deferred until withdrawn
- Contributions may be tax deductible
- Penalty-free withdrawals for qualified education expenses, qualifying medical expenses, and first time home purchase*
Do you have earned income and your modified adjusted gross income is less than the defined limits set by Congress? A Roth IRA might be right for you. Benefits include:
- Earnings are tax deferred and qualified withdrawals of earnings are tax free if the account is open for five years
- Qualified withdrawal reasons include disability, death, age 59½ or older or first time home purchase*
- Not required to begin withdrawals at age 70½
Here are a couple of general rules-of-thumb:
- Choose a Traditional IRA if you want the tax deduction right now - it's also a better choice if you anticipate paying taxes at a significantly lower rate in retirement
- Choose a Roth IRA if you don't need the tax break right now - its flexibility allows you to withdraw regular contributions at any time, tax and penalty free plus you don't have to take mandatory distributions at age 70½.
As always, consult with your tax advisor for complete details. This information is general and not intended to be tax advice. Please consult a tax professional.
- Visit our IRA Education Center for more information on a variety of retirement savings topics
- Check out the interactive online learning experience at Learn About Retirement
- Looking for other investment options? Visit the Invest page to learn more
We're here to help:)
Let us help you determine which account is right for you. Visit any First Credit Union branch - find a location near you - or give us a call at 480.756.5500 or toll-free outside the Phoenix area area at 1.800.732.6986.
Term Certificate and Accumulation Accounts
*APY = Annual Percentage Yield. Dividends are prospective. In case of early withdrawal or fees, earnings could be reduced. The rate, APY, and fee schedule may change at any time without notice. Other investments are also available. Call (480) 756-5500 for more information.
*Lifetime limit for exemption on first time home purchase is $10,000.