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In addition to retirement funding sources like Social Security, 401(k) plans, and even mutual funds, Individual Retirement Arrangements (IRAs) could play an important part in your retirement savings strategy. At FCFCU we offer a variety of IRA’s. Invest in IRA certificates to earn a better rate of return than a regular IRA savings.
TRADITIONAL IRA
A Traditional IRA provides tax-deferred* earnings and a possible tax deduction. Contribute up to $4,000 in 2005. If you are 50 or over you may contribute $4,500.
- No minimum deposit to open
- Transfers, rollovers, and direct rollovers accepted
- As an employed individual, you may contribute up to $4,000 ($5,000 if 50 or over) per year or 100% of earned income, whichever is less, to your IRA
- Your IRA earnings are not taxed as income until you withdraw them as early as age 59½ and no later than April 1 following the year that you reach age 70½
- Automatic payroll deductions and automatic transfers are a great way to save for your future
- No annual administration fee
- Check out our rates!
*Consult your tax advisor regarding your individual tax situation.
ROTH IRA
The Roth IRA is a newer option for retirement savings, where contributions are not deductible, but earnings are tax-free. Invest after-tax money or convert your traditional IRA to a Roth IRA.
- Invest up to $4,000 per year in 2005 (not tax-deferred), $4,500 per year if you are 50 or over.
- Withdraw contributions tax-free at any time
- Unlike traditional IRAs, distributions are not required at age 70½
- You may withdraw any contributions from a Roth IRA tax-free at any time, regardless of your age or length of time the account has been established IRS Penalties
- Check out our rates!
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