Traditional and Roth IRAs are personal savings plans that allow you to decide which line of action is best for you. Whether you want the taxes to be deducted now or later, the decision is yours.

A New Dimensions FCU Individual Retirement Account is a great plan that allows you to choose a plan based on your future financial needs. 

When choosing between a Traditional IRA and a Roth IRA, the question to ask yourself is: Do you want to save money on taxes now or when you retire?

Traditional IRAs make sense if you want a tax deduction now or if you think you’ll be in a lower tax bracket when you retire.

Roth IRAs are a good fit if you don’t need the tax break now. If flexibility is what you need, consider a Roth IRA. A Roth IRA is a more flexible investment because you can withdraw regular contributions at anytime, tax-free and penalty-free, and you do not have to take mandatory distributions at age 70 ½.

If you leave your job or retire, and you have earned benefits in a qualified retirement plan, you can keep the tax-deferred status of the funds by rolling them over directly into a Traditional IRA.

Through a direct rollover, you postpone paying taxes and you avoid mandatory 20% federal income tax withholding.

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