The most important things to know about IRAs are that anyone can open one and it’s never too late to start. The next most important thing is that we are here to help. There are options to consider when deciding whether a Traditional IRA is best or a Roth IRA suits your needs. Contributions, earnings and withdrawals are taxed differently in each. Traditional IRAs reduce your taxable income today but come with early distribution penalties if withdrawn before age 59.5 (with some exceptions) and distributions are generally taxable income at any point. Roth IRA contributions are not tax deductible, so future withdrawals are not subject to either tax or penalty.
Questions? Who wouldn’t have questions? Please contact your credit union representative for help and the answers you need.