Plan For The Future
Individual Retirement Account (IRA)
There is no better time to save for retirement than now. During retirement it is vitally important to have enough saved to cover your living expenses. The majority of Americans do not have sufficient retirement savings to cover basic living expenses and uninsured medical costs, let alone travel and leisure.
Let Hercules First Federal Credit Union help you protect your financial future by adding a Traditional or ROTH IRA to your retirement plan.
A retirement advisor at Hercules First Federal Credit Union can help you understand which IRA options are right for you. We offer many types of IRAs, so please call 801-968-9011 today to speak with an IRA specialist.
Traditional IRAs
A traditional IRA may provide you significant immediate tax savings, and due to the deferral of all taxes on earnings, the power of compound earnings is strengthened. Traditional IRAs offer tax-deferred earnings and the possibility for tax-deductible contributions. You can contribute to a traditional IRA if you earn compensation and you will not reach age 70 ½ by the end of the year. Earnings in a traditional IRA are not taxed until they are withdrawn. The ability to defer taxes on the earnings, and to withdraw in a year when you may be in a lower tax bracket, can mean fore after-tax dollars for your retirement. These tax advantages may the IRA a powerful tool in creating a balanced, long-term savings plan. We suggest you consult with a tax professional and find out if a traditional IRA is right for you.
With a Traditional IRA:
- Earnings accumulate tax-deferred
- Contributions are tax-deductible if you qualify
Roth IRAs
Roth IRAs offer unique and exciting savings opportunities, and they’ve gotten better over the years. Roth IRAs give many members an easy and safe way to plan for the future. Unlike traditional IRAs, contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free. Of course, you must conform to certain tax requirements to get this tax-free advantage. A Roth IRA may be a perfect fit for you as it offers generous incentives to boost your retirement savings, as well as more ways to use your nest egg. We suggest you consult with a tax professional to find out if a Roth IRA is right for you.
With a Roth IRA:
- Contributions are allowed at any age
- Qualified distributions are tax-free
- Flexible withdrawal options are available
