An Individual Retirement Account (IRA), is a self-funded retirement plan that allows you to contribute a limited yearly amount toward your retirement. Funds are invested at competitive compounding rates. Taxes on the interest earned in the account are deferred. Each IRA Account is Insured separately up to an additional $250,000 by NCUA.
- IRA certificate of deposit options are also available. Your IRA is able to take all of the money that is invested in certificates of deposit, which may allow you to access higher interest rates for a set period of time.
- IRA's may provide potential tax benefits. Be sure to speak with your tax adviser to find the benefits that may be available to you.
A Traditional IRA is a tax-deferred individual retirement account. Traditional IRA contributions are tax-deductible at the time they are deposited and both the principal & the interest earned in the account are taxed as regular income when they are withdrawn as distributions.
A Roth IRA is an individual retirement account that provides tax-free growth. Roth IRA contributions are fully taxable at the time they are deposited and both the principal & the interest earned in the account are tax-free when they are withdrawn as distributions.
An Education IRA is a tax-qualified savings account available only to children under the age of 18 and designed to accumulate savings to pay for education expenses. Education IRAs, now known as the Coverdell Education Savings Account is really not an IRA at all, but a new way to save for qualified higher education expenses such as tuition, fees, books, supplies, equipment (including the purchase of a computer, educational software and internet access) required for college, vocational, public & private elementary & high schools.
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