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IRAs

If you haven’t started thinking about retirement, today is the perfect time to start. IRAs through US Community Credit Union are a great tool to put you on the right track to meet your retirement goals. If you’re currently a “High Earner”, a Traditional IRA might be right for you. With a Traditional IRA, you pay taxes in your retirement years, when your tax rate will probably be lower.

Traditional IRA Benefits:

  • Contributions may be tax deductible in the year the contributions are made.
  • Taxes due on the earned interest are deferred until funds are withdrawn.
  • Mandatory withdrawal date April 1 of the year following the calendar year in which you reach age 70½, if you were born before July 1, 1949.
  • Mandatory withdrawal date April 1 of the year following the calendar year in which you reach age 72, if you were born after Jun 30, 1949.
  • Withdrawals can begin at age 59½.

US Community Credit Union offers several IRA options to fit your specific needs including the Traditional IRA mentioned above and Roth IRAs. Roth IRAs are a great option for individuals early in their career. Most of the time, people early in their careers are in a lower tax bracket, so paying taxes on a Roth IRA cost less. So when retirement knocks on the door, you won’t be paying any taxes on withdrawals.

Roth IRA Benefits:

  • Contributions are post-tax, and growth may be tax-free.
  • Since withdrawals are not reportable income, they won’t affect your adjusted gross income during retirement.
  • Contributions can be made after age 70½, and no withdrawals are required during the accountholder’s life.
  • Withdrawals from a Roth IRA are tax- and penalty-free as long as the account has been open for at least five tax years and you are either over 59 1/2, disabled or buying a first home.

If you haven’t started thinking about retirement, today is the perfect time to start. IRAs through US Community Credit Union are a great tool to put you on the right track to meet your retirement goals. If you’re currently a “High Earner”, a Traditional IRA might be right for you. With a Traditional IRA, you pay taxes in your retirement years, when your tax rate will probably be lower.

Traditional IRA Benefits:

  • Contributions may be tax deductible in the year the contributions are made.
  • Taxes due on the earned interest are deferred until funds are withdrawn.
  • Mandatory withdrawal date April 1 of the year following the calendar year in which you reach age 70½, if you were born before July 1, 1949.
  • Mandatory withdrawal date April 1 of the year following the calendar year in which you reach age 72, if you were born after Jun 30, 1949.
  • Withdrawals can begin at age 59½.

US Community Credit Union offers several IRA options to fit your specific needs including the Traditional IRA mentioned above and Roth IRAs. Roth IRAs are a great option for individuals early in their career. Most of the time, people early in their careers are in a lower tax bracket, so paying taxes on a Roth IRA cost less. So when retirement knocks on the door, you won’t be paying any taxes on withdrawals.

Roth IRA Benefits:

  • Contributions are post-tax, and growth may be tax-free.
  • Since withdrawals are not reportable income, they won’t affect your adjusted gross income during retirement.
  • Contributions can be made after age 70½, and no withdrawals are required during the accountholder’s life.
  • Withdrawals from a Roth IRA are tax- and penalty-free as long as the account has been open for at least five tax years and you are either over 59 1/2, disabled or buying a first home.

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*This information should not be considered as advice. Please consult your tax advisor for information on your unique situation.