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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  • Taxes due on the earned interest are deferred until funds are withdrawn.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.

We realize you want what’s best for your children, and gaining a quality education is high on that list. That’s why we offer a tax advantaged way to save for those upcoming educational costs.

Coverdell Savings Account Benefits:

  • Up to $2,000 per year may be deposited for each child under age 18.
  • Since withdrawals are not reportable income, they won’t affect your adjusted gross income during retirement.
  • Anyone can make a contribution – parents, grandparents, relatives, or friends
  • Earnings and withdrawals are tax free if used for educational expense by age 30
  • Can be transferred to another child in family
  • 10% penalty if used for another purpose
  • These contributions are not tax deductible, but dividends earned are tax free.

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.

We realize you want what’s best for your children, and gaining a quality education is high on that list. That’s why we offer a tax advantaged way to save for those upcoming educational costs.

Coverdell Savings Account Benefits:

  • Up to $2,000 per year may be deposited for each child under age 18.
  • Since withdrawals are not reportable income, they won’t affect your adjusted gross income during retirement.
  • Anyone can make a contribution – parents, grandparents, relatives, or friends
  • Earnings and withdrawals are tax free if used for educational expense by age 30
  • Can be transferred to another child in family
  • 10% penalty if used for another purpose
  • These contributions are not tax deductible, but dividends earned are tax free.

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