Individual Retirement Account (IRA)
It is essential to be financially prepared for retirement after dedicating a lifetime to hard work. You deserve to live comfortably and enjoy the fruits of your labor. Having an additional source of income can significantly enhance your retirement experience.
Our committed team is ready to talk about how you can make your retirement years truly shine with both Traditional and Roth IRAs at your convenience.
- $200 to $500 minimum balance depending on term.
- Supplement your expected retirement income.
- May provide significant tax advantages. Consult your tax advisor for personalized details.
- Start saving for your retirement today.
Traditional IRA
IRAs offer a tax-deferred benefit. This means that you are not required to pay taxes on any interest or gains earned by the account until you decide to withdraw the funds. Additionally, the contributions you make to the account may qualify for a tax deduction annually.
Normally, if you withdraw money from your Individual Retirement Account (IRA) before reaching the age of 59½, you will have to include it in your gross income and pay an additional 10 percent tax penalty. However, there are certain exceptions to this penalty, such as using IRA funds to cover your medical insurance premium in case of a job loss.
If you have an IRA and are curious about the tax implications, please contact your tax advisor for personalized details.
Roth IRA
A Roth IRA is an account for retirement savings where you contribute money that has already been taxed. Although you won’t receive tax benefits in the current year, your contributions and earnings can grow without being taxed. You can withdraw funds without penalties after reaching age 59½ and having the account open for at least five years.
- Account earnings grow without being taxed
- No taxes on qualified distributions
- Tax-free growth in account
- No minimum distributions required.
As you reach the eligible age to access a Roth IRA, you might not have to pay any taxes, which is even better. Until then, only your contributions are subject to taxation, while any interest earned remains untaxed and can be withdrawn early if needed. Consult your tax advisor for personalized details.
Your Money Protected
Safety is our number one priority where your money is concerned. That’s why accounts at Vicinity Credit Union are insured up to $250,000 by the National Credit Union Administration (NCUA). Rest assured your money is protected and insured.
