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It's never too early to start saving for your retirement. Whatever your goals, you must plan wisely.
To accomodate your retirement needs, ACFCU offers a wide range of Individual Retirement Account services...from a savings IRA that offers the option of making your deposits through payroll deduction or automatic transfer to a 30 Month IRA Certificate. Dividends are calculated based on the average daily balance and paid according to the terms of your IRA.
A New Accounts Specialist will answer your IRA questions and help you begin planning for your future.
ROTH IRAs
The Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. To be eligible to contribute to a Roth IRA: you must have earned income (or your spouse must have earned income) and your modified adjusted gross income (MAGI) cannot exceed certain limits.
The best part of the Roth IRA is when you're ready to make a withdrawal, you pay no taxes on any of the earnings that your money has generated, provided you take the earnings as part of a qualified distribution. In order for earnings to be tax free, you must first meet a five-year holding period for your Roth IRA. This period begins with the tax year for which the first contribution is made. After that, any earnings you withdraw for a qualified distribution reason are tax free and IRS penalty free. Qualified distributions include:
*Distributions made on or after the date on which you attain age 59 1/2,
*Distributions made to your beneficiary (or your estate) upon your death,
*Distributions attributable to your being disabled,
*Qualified first-time home buyer distributions (up to $10,000).
A New Accounts Specialist will explain the nature of these accounts in more detail and help you complete the simple forms necessary to establish your Roth IRA.
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