If you're a planner -- and when it comes to your financial life, we certainly hope you are -- you may have some goals you're working toward. Emergency funds, college funds, dream home funds.
Today we want to take a look at one even further down the road -- your retirement fund.
We'll take a look at one of the easiest and safest savings tools available to help you meet your financial goals: Individual Retirement Accounts, commonly known as IRAs. Specifically, we’ll look at the types of IRAs you can open just by walking into your local Avadian branch.
Benefits
An IRA can offer a significant tax benefit: contributions to, and withdrawals from, your account may be tax-free or tax-deferred, depending on the type of account you own and your age.
An added benefit of Avadian holding your IRA is that your IRA is covered for up to $250,000 by the National Credit Union Association (NCUA). No insured savings have ever been lost by members of a NCUA member credit union, and Avadian is one of just a few credit unions in the state to offer additional insurance of up to $250,000 through Excess Share Insurance, giving you even more protection.
IRA Options at a Glance
Traditional IRA Shares
- Interest earned is tax-deferred until withdrawal
- Earns a quarterly rate that is compounded daily
- Contributions to the account are tax-deductible up to the limits specified by the IRS
Traditional IRA CD
- Interest earned is tax-deferred until withdrawal
- Allows you to lock in your rate for as few as seven days up to 60 months
- Earns a rate that is compounded daily and interest is paid monthly (except CDs ranging from three to 11 months, which do not compound and interest is paid at maturity)
- Contributions to the account are tax-deductible up to the limits specified by the IRS
- Withdrawals are allowed as specified by the IRS (fees may apply if you withdraw before the CD’s maturity)
- CDs automatically renew at maturity for another term with conditions available at that time (you’ll be notified before maturity, and you have 10 days to withdraw funds instead of renewing)
Roth IRA Shares
- Contributions are not tax-deductible
- Allows tax-free withdrawals after five-year period in certain circumstances
- Earns a quarterly rate that is compounded daily
- Once the five-year period has been met, withdrawals are tax-free after age 59½
Roth CD IRA
- Contributions are not tax-deductible
- Allows tax-free withdrawals after five-year period in certain circumstances (fees may apply if you withdraw before the CD’s maturity)
- Earns a rate that is compounded daily and interest is paid monthly (except CDs ranging from three to 11 months, which do not compound and interest is paid at maturity)
- Once the five-year period has been met, withdrawals are tax-free after age 59½
- Allows you to lock in your rate for as few as seven days up to 60 months
- CDs automatically renew at maturity for another term with conditions available at that time (you’ll be notified before maturity, and you have 10 days to withdraw funds instead of renewing)
Visit your local Avadian Credit Union and ask for more details about opening an IRA.
NOTE: Avadian does not offer tax advice. You should consult a tax advisor to determine what best meets your needs.
This credit union is federally insured by the NCUA.
Additional insurance of up to $250,000 on your savings accounts is provided by Excess Share Insurance Corporation, a licensed insurance company.
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