Individual Retirement Accounts (IRAs)
Q: When's the best time to start saving for your retirement?
A: Now!
Here's a little hint...the sooner you start the sooner you can retire, and the more secure you'll be. Camino Federal Credit Union can help. We offer federally insured IRAs with significant tax benefits to go with greater returns. Building a road to a secure future.
- Summary
- Traditional and Roth IRAs
- Greater returns than regular savings
- Tax-saving benefits enhance savings*
- No setup or maintenance fees
- Easy rollovers from other IRAs, 401(k)s, and 457s
- $25 minimum deposit to open
- Funds within IRA can be invested in Camino CDs
- Reduced CD opening deposit to $2,000
- Federally insured to $250,000 by NCUA
*Consult a tax advisor.
- Traditional vs. Roth
There are advantages to both traditional and Roth IRAs. One of the biggest differences is when you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.
Traditional IRA
- No income limits to open
- Contributions are tax deductible on state and federal income tax*
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 70½
Roth IRA
- Adjusted gross income must be less than $122,000 to contribute ($179,000 for joint filers)
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penalty**
- No mandatory distribution age
*Subject to some minimal conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
