When saving for retirement, everyone has their opinion about which way is best. That's why UCFCU offers two types of Individual Retirement Accounts.
Traditional IRA's
Many people choose a traditional IRA because of the tax break feature. Contributions to a traditional IRA are tax deductible. Also traditional IRA's are best if you're planning to roll over money from other qualified retirement accounts, such as a 401k.
Roth IRA's
Roth IRA's are a relatively new tool to help you plan for retirement. Contributions are not tax-deductible. Instead, earnings grow tax-free; and you pay no taxes when you withdraw the money provided it's been in the account at least 5 years and you're older than 59 1/2. You can also withdraw tax free if you become disabled. Or, you can use the money for a first-time home purchase, but there's a $10,000 lifetime withdrawal limit.
With a Roth, you don't have to begin withdrawing money at age 70 1/2, as is the case with traditional IRA's. Your earnings will continue to grow tax free, for as long as you like.
If you would like more information about UCFCU's IRA's stop by, e-mail us or call us at 931-484-9433 ext. 33 today!!!
UCFCU encourages all members to consult their tax advisor when deciding which Individual Retirement Account is the right investment.
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