Individual Retirement Account (IRA)

It's never to early too start planning for the rest of your life. Time to invest in YOU.

Invest in your future now with an Individual Retirement Account (IRA). In other words, it is a personal savings plan

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  IRA contributions vary by age and year
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  If you’re age 50 or older, you can make an additional “catch-up” contribution of $1,000.00/year beginning in 2006.
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  Contributions may be tax-deductible
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  Always consult your tax advisor
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  IRA accounts are insured by the NCUA.

There are two options to choose from when considering an IRA: Traditional or Roth. The primary difference is whether or not you want to pay taxes on your IRA withdrawals in your retirement years.

Traditional IRA

Your contributions to a traditional IRA may be tax-deductible, which depends on your income and whether you participate in your employer-sponsored retirement plan. Always consult your tax advisor. Taxes are not paid until withdrawals or distributions are made.

IRA distributions are taxed as ordinary income in your tax bracket at the time of your retirement. All your earnings in a traditional IRA grow tax-deferred, until you withdraw funds in your retirement years.

Roth IRA

Any contributions you make to a Roth IRA are not tax-deductible. Also, the money you invest is after-tax income. The benefit to a Roth IRA is that all of your “qualified” withdrawals or distributions are not taxable. Your investment grows tax free.