Preparing for Retirement
It’s important to be prepared for the years after your retirement. You must ensure you have enough income to cover any expenses. An IRA from IRFCU could help you be prepared.
What is an IRA?
An IRA is a type of deposit account that provides tax advantages for retirement savings and a fixed interest rate.
Benefits of an IRA
- IRAs are accessible and easy to set up.
- Tax-Advantaged accounts
- IRAs are exclusively owned by you
- IRA accounts are insured separately from other accounts up to $250,000
| Certificate Term | APY | Minimum Deposit |
|---|---|---|
| 18 MTH IRA SHARE CD | 4.84% | $1000 |
| 36 MTH IRA SHARE CD | 3.75% | $1000 |
| 60 MTH IRA SHARE CD | 3.19% | $1000 |
| Account Type | APY | Minimum Deposit | Minimum Balance |
|---|---|---|---|
| TRAD IRA ACCUM SHARE | 0.65% | $0 | |
| ROTH IRA ACCUM SHARE | 0.65% | $0 | |
| SEP IRA | 0.65% | $0 |
What you should know:
You can contribute:
- $6,500 per year for an individual
- $7,500 per year if you are age 50 or older
Penalties
Early withdrawals can be subject to IRS penalties for both Traditional and Roth IRAs. If you are under the age of 59.5, you will be subject to a 10% early distribution penalty tax on any taxable amount taken, unless you quality for a penalty exception.*
Roth IRA
| You may qualify for a tax credit of up to $1,000 when you make a contribution. |
| You can withdraw Roth IRA contributions at any time, tax and penalty free. |
| Any earnings are tax-deferred (you do not pay tax on the earnings until you withdraw them). |
| If you satisfy the qualified distribution requirements, you can withdraw the earnings tax free. |
| You are never required to take money out of your Roth IRA, no matter what your age. |
Traditional IRA
| You may qualify for a tax credit of up to $1,000 when you make a contribution. |
| Any earnings are tax-deferred ( you do not pay tax on the earnings until you withdraw them). |
| If your contributions are tax-deductible, you do not pay taxes on them until you withdraw the money. |
| Any after-tax amounts (nondeductible contributions) can be withdrawn tax and penalty free. |
APY = Annual Percentage Yield. Rate shown is for a 5-year term and is effective November 2024.
Consult your tax advisor regarding your individual tax situation.
Maximum annual contribution limits may apply to deposits made to retirement accounts. Consult a tax advisor for your maximum contribution limit.
Early withdrawal penalties may apply. The Internal Revenue Service may also impose a penalty for early withdrawals. Contact a tax advisor to determine if a penalty applies before making a withdrawal from an IRA.
Traditional IRA and Roth IRA have separate qualification criteria and tax implications. Consult a tax advisor to determine which IRA is right for your situation.
Insured by NCUA. All IRA and Roth IRA shares that an individual has in the same insured credit union are added together and the total is insured up to $250,000
*Exceptions include death, disability, certain medical or insurance expenses, higher education expenses, first-time homebuyer expenses, birth or adoption of a child expenses, substantially equal periodic payments, IRS tax levy, qualified military reservist distributions, qualified disaster-related distribution, or distributions due to a terminal illness