Individual Retirement Accounts (IRA)
It's never too late, or early, to plan for your retirement. A SAFCU IRA is a smart addition to your retirement portfolio, providing potential tax advantages. Whether you plan to retire in a few years or a few decades, SAFCU is the place to get started. We offer two IRA plans to help you start saving:
A Traditional IRA plan offers three basic benefits: Security for your retirement years; tax-deferred dividends until you withdraw your funds (as early as age 59-1/2); and a possible deduction from annual gross income on your federal income tax return. These tax advantages make the Traditional IRA a powerful tool in creating a balanced, long-term savings plan.
Roth IRAs are different from traditional as contributions are made with post-income taxed dollars. Unlike a Traditional IRA, Roth IRAs permit continuing contributions after age 70-1/2, and there is no requirement to begin withdrawals at age 70-1/2. Retirement savers can have both a Traditional and a Roth IRA, but combined contributions in any tax year are limited to that year's limit. The Roth IRA offers more incentives to boost your retirement savings.
Deciding Between a Traditional IRA and a Roth IRA
Review the following chart to decide which best fits your financial situation.
Two Ways to Invest
Our Traditional and Roth IRAs are available as IRA Savings or IRA Certificates. Here's an overview of both options: