IRAs

An Individual Retirement Account (IRA) opens the door to a full range of benefits for you and your family. You can save for a comfortable retirement or use your savings for a quality education, or even your first home.

With an IRA, contributions may be tax deductible and interest may be tax deferred.

Consult with your tax advisor regarding your IRA eligibility. If you wish additional information and overview of IRA's prior to contacting your tax advisor, please review the IRS website at: https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras

A VARIETY OF RETIREMENT SAVINGS OPTIONS

Open a new IRA or rollover your money from an existing account at another financial institution. Choose from traditional IRA programs, Roth IRA, Coverdell ESA and SEP accounts. CFCU also offers attractive IRA Money Markets and Term Share Certificates

ROTH IRAS - AN ATTRACTIVE INVESTMENT

If you meet eligibility requirements for a Roth IRA, your earnings grow tax free and are also tax free when you make qualified withdrawals. In addition, you are not required to take required minimum distributions (RMD) at age 70 ½.

You may even be able to convert funds in a traditional IRA to a Roth IRA and take advantage of tax-free withdrawals on higher-balance accounts in retirement. (Taxes may be due at the time of transfer; consult your tax advisor.)

Converting funds to a Roth IRA has two primary benefits. First, you can avoid future mandatory disbursements from your IRA. This keeps your money growing longer in a tax-sheltered IRA. Second, by converting funds now, you owe tax at today’s ordinary income rates. If you think the federal government is going to raise tax rates over time, or that your beneficiaries will be in a higher tax bracket, converting now makes good sense. Paying the tax bill at your lower rate will ultimately produce more cash than if you left the money in a traditional IRA.

SEP ACCOUNTS

SEP accounts are available for eligible self-employed members. Speak with a Member Services Representative for more information.

Before making any changes to your current savings strategy, discuss your plans for your IRA or SEP with your attorney or tax professional.

NEXT STEPS

Whichever option you choose, opening an IRA with Chiropractic Federal Credit Union is easy. Stop in our Farmington, Michigan, office or call us at 248-478-4020 and speak with a Member Services Representative.