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Retirement Products Made For You

Posted on: Wednesday May 10, 2023

You are never too young to start saving for your retirement. Whether you want to open a new retirement savings account or transfer money into an existing one, we have the account products to fit your needs! We offer two types of IRA accounts: Traditional IRA and Roth IRA. Before discussing the difference between these products, it’s essential to understand what an IRA is. IRA stands for Individual Retirement Account and is a deposit account product that provides tax advantages for retirement savings and allows an individual to save for retirement with tax-free growth or on a tax-deferred basis. Please continue reading below to learn more about our different IRA/Retirement products!

Traditional IRA

A Traditional IRA allows you to save for retirement with tax-deferred earnings and a possible tax deduction. By using a Traditional IRA to save for your future, you may be able to save money today if:

  • You are eligible to deduct Traditional IRA contributions on your federal income tax return, or
  • You qualify for a tax credit of up to $1000.00

But first, you must be eligible to contribute to a Traditional IRA:

  • You (or your spouse if filing a joint tax return) must earn compensation from employment

Note: Consider talking with a competent tax advisor to determine whether you’re eligible for a tax deduction or tax credit on your Traditional IRA contributions.

Roth IRA

A Roth IRA helps you save for retirement with the potential for future tax-free income. By saving for retirement with a Roth IRA, you can look forward to the following:

  • Tax-free distributions
  • Not being required to take money out
  • A possible tax credit of up to $1000

But first, you must be eligible for a Roth IRA:

  • You (or your spouse if filing a joint tax return) must earn compensation from employment
  • Your earned compensation (or you and your spouse’s combined compensation if filing a joint tax return) must be less than or within the applicable IRA limits

Note: Consider talking with a competent tax advisor to determine whether you’re eligible and whether contributing to a Roth IRA makes sense.

IRA Certificates

IRA Share Certificates are a great way to earn more interest on your retirement savings. Typically, most people do not take money from their IRA accounts until they are ready for retirement. So, why not put those funds into an IRA Share Certificate account, earning you much higher dividends? IRA Share Certificates work like regular Share Certificates, earning monthly dividends (Share certificates are also commonly known as CDs).

If you are interested in opening or moving an IRA account, please contact us at (800) 326-6190 or info@newdimensionsfcu.com for more information.