When it comes to our Fire Family it’s never too early to start thinking about retirement. The earlier you start saving, the more you have to enjoy with later. We have several options to help you make the most of your retirement years.
IRAs are one of the best retirement savings tools available today. More people than ever before are now eligible to benefit from the tax advantages available through IRAs. What makes IRAs such a great retirement savings tool are the special federal tax laws governing the taxation of amounts earned within an IRA. Earnings within Traditional IRAs are tax-deferred until they are distributed and earnings within Roth IRAs may be distributed tax-free. Over time, these special tax features can result in significantly larger IRA savings accumulations than what can be accomplished in ordinary savings tools.
A Traditional IRA is a great way to minimize tax exposure while maximizing your retirement savings (subject to income and eligibility). This long-term retirement account is unique as members may add funds to the account at any time.
- Contributions and earnings will grow tax-deferred until withdrawn and may be 100% tax-deductible, depending on income or employer retirement plan*
- Add to your traditional IRA until you turn 70 ½
- Dividends may be tax deferred or tax deductible*
- Withdrawals may start at age 59 ½ or before without an early withdrawal penalty if certain conditions are met - consult an IRA specialist
- No minimum deposit to open; No minimum balance required; No maintenance fees
A Roth IRA is like having a Traditional IRA, with a little twist. Here is what you get:
- No taxes on dividends or earnings
- You can keep adding to your Roth IRA after you turn 70-1/2 and you aren’t required to start taking money out until that time
- You can contribute up to $5,500 to a Roth IRA (or up to $6,500 if you are over 50 years).
Consult an IRA specialist to understand any restrictions on contributions. You can also convert your Traditional IRA into a Roth IRA. Ask us for details.
Freedom IRA Certificate
A way to keep all of your retirement accounts in one place until you decide how to allocate your assets (401(k) plans, DROP, Deferred Compensation, etc.).
- 4 month term
- New money only
Money Market IRA
Keep your retirement account investment liquid while earning higher returns.
- Tiers of $2,500, $50,000, $100,000, and $200,000+
Earn high returns at a fixed rate while retaining tax-advantage benefits with your Individual Retirement Account Certificate.
- Terms available include 6 months, 1 year, 18 months, 3 years, and 5 years
- Minimum balance tiers of $1,000, $50,000, and $100,000
Coverdell ESA Certificates
The Coverdell ESA, originally known as the Education IRA, is designed solely to help pay education expenses. The key feature of Coverdell accounts is that they shelter investment growth from the tax collector. Savings set aside - plus the earnings they make - are fully available for qualified school bills.
Coverdell accounts offer investment flexibility, transferability, and tax-free withdrawals to cover education costs such as books, tuition, and room and board. And they're not just for college kids. The Coverdell could be used at any school, public or private, and even for grammar school and high school. They're also available for students with special needs, regardless of their age.
- Minimum balance tiers of $1,000 and $10,000
- Terms of 18 months, 3 or 5 years
- One-time annual contribution to certificate allowed
- Contribute up to $2,000 annually
- Tax-deferred growth
- Potential tax-free withdrawals if used for qualified education expenses at any college, university, vocational, elementary or secondary school .
Visit a local office or contact us at (800) 231-1626 to start a Coverdell Certificate account today.
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Already a member with Firefighters First? Simply log in to FIRE OnLine banking to open an IRA today.
Funds are insured up to $500,000 per account by American Share Insurance (ASI). Please consult your tax advisor for recommendations on which type of IRA will be most beneficial to your specific financial situation and IRS restrictions.
For more information regarding IRA forms, please stop by a Credit Union office or call us at (800) 231-1626.