Plan now for retirement with an IRA

Your credit union offers both the tax-deferred Traditional IRA and the tax-free retirement earnings of the Roth IRA.

You must be employed to take advantage of the benefits offered in IRAs.

You may contribute a maximum of  $5000 per year if you are under age 50. However, currently you may “catch-up” and contribute a maximum of $6000 per year if you are age 50 and over.  What’s more, you do not have to make contributions to your IRA every year, it’s up to you and your financial planning.

Which would be best for you?

Traditional IRA

This is a special tax-deferred savings plan authorized by the Federal Government to encourage Americans to save for retirement.  The interest earned remains tax-free (deferred) until you begin to withdraw the funds.  In addition, there are good, direct income tax deductions for most contributors.  You must begin withdrawing a required minimum distribution by age 70 ½.

Roth IRA

Unlike the Traditional IRA, the Roth IRA allows participants to make non-deductible after taxes contributions with earnings that can be tax-free. So, when you begin to withdraw from your Roth IRA it will not be taxable income to you!   And, there is no set age when you must begin withdrawing from your Roth IRA – you can save it for future generations.

The Poplar Bluff Federal Credit Union currently offers six investment opportunities to suit your particular need.