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1-WHEN should I start looking into IRAs?
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IRAs are for Every Stage of Life.
IRAs are one of the most valuable savings tools available today. More
people than ever before are able to contribute to IRAs and benefit from the
great tax advantages. So regardless of what stage of life you’re in, an
IRA at Picatinny Federal Credit Union can help.
Starting your career – As you start your career, start building
your retirement plan. A Roth IRA can provide you with tax-free
withdrawals when you retire.
Planning as a couple – We can help both you and your spouse
start IRAs. If you both qualify, you can both contribute to an IRA.
Flexibility for a growing family – Your IRA investment can be
used for a first-time home purchase or qualified educational expenses.
Securing your retirement – If you’re nearing retirement, or
even if you’re already retired, consider a safe, secure credit union IRA.
As an added bonus, there are increased contribution limits if you are age 50 or
older.
See what an IRA at Picatinny Federal Credit Union can do for you. Call one
of our Member Service Representatives today at (973)361-5225
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2-Still not sure about starting an IRA?
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First off remember, an IRA is an Intelligent Investment
If you don’t have an IRA, you owe it to yourself and your financial future to
start your account now. The future of Social Security is an unknown, so
take care of yourself and your loved ones by starting an IRA.
Our rates are competitive, your account is insured, and we pay particular
attention to your personal financial needs, because at PFCU, you are a member,
not just a customer.
This year you can contribute $4,000 to a Roth or Traditional IRA. You can
contribute even more if you are 50 or older. The longer you wait to
contribute to an IRA, the more you miss out on because every additional year of
dividends adds a lot to your total IRA value.
Starting your IRA, or transferring it to the
credit union, could be one of the best financial moves you’ll ever make.
If you would like more details or have any questions, call one of our Member
Service Representatives today at (973) 361-5225.
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3-What if I am OVER 50 already?
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If you’re 50 or older, you have an IRA advantage.
It’s called a “catch-up” contribution, and it lets you contribute additional
funds to your IRA – but only if you’re 50 or older. Take full advantage
of this special opportunity by contributing to a traditional or Roth IRA.
In coming years, individual and catch-up contribution limits are scheduled to
increase even more to a maximum of $6,000 in 2008! See the chart below:
A traditional IRA allows your funds to grow tax-deferred; therefore you don’t
pay taxes until you take distributions. In a Roth IRA, contributions are
made with after-tax dollars, and earnings may be tax-free when you take the
money out.
With either IRA, the “catch-up” contributions are an advantage that makes a big
difference. To learn more, call one of our Member Service Representatives at
(973) 361-5225.
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4-Are PFCU IRA’s insured up to $100,000 like other
accounts?
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An IRA is an intelligent investment because of the tax advantages and how it can
help you save for retirement. But there’s a new reason to get an IRA at
PFCU if you don’t already have one. Your IRA is now insured up to $250,000, up from
$100,000 previously.
This new coverage applies to both Traditional IRAs and Roth IRAs. If you
have multiple IRAs with us, all of your IRA deposits are added together and the
total is insured up to $250,000. This coverage is in addition to the
$100,000 insurance on your other credit union accounts. With the higher
coverage, you can be sure that more of your money for retirement will be
protected.
To learn more or to determine if an IRA is right for you, call one of our Member
Service Representatives at (973) 361-525.
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5-What are the different types of IRAs?
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IRAs are limited to: Traditional IRAs and Roth IRAs, but there
are also IRA Certificates.
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6-What’s the difference?
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If you’re trying to decide between a Traditional IRA and a Roth IRA, the main
question is: Do you want to save on taxes
now or when you retire? If
you want to sav e on taxes now, a traditional IRA is a smart choice.
Especially if you think you’ll be in a lower tax bracket when you
retire. If you would rather save on
taxes when you retire, and flexibility in withdrawing funds is important,
choose a Roth IRA. An IRA
Certificate has a fixed rate of return much like a certificate or a CD.
There are no annual maintenance fees with IRA certificates and they are
still insured up to $250,000.
Our IRA Certificate rates are very competitive rates (click here) and
there are still many tax advantages.
Our MSR’s here at PFCU are happy to answer your questions. Call us today at
(973) 361-5225. Not intended to
provide tax advice. Contact a tax professional.
Each has advantages, but either one will jump-start your retirement savings.
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7-What’s the advantage of aTraditional IRA?
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It’s easy to invest in your future at PFCU. A Traditional IRA can help you
prepare for retirement and serve a number of other purposes.
Grow Your Nest Egg – Earnings and deductible contributions in
traditional IRAs grow tax-deferred until withdrawal, which can begin at 59½ but
must begin at age 70½.
First Home Purchase – You can withdraw up to $10,000
penalty-free towards the purchase of your first home.
Pay for College – Traditional IRA funds used to pay for
qualified educational expenses can be withdrawn penalty free. There is no
dollar limit and funds can be used for tuition, fees, books, and supplies at a
post-secondary institution.
Assist with Medical Expenses – Funds to pay for certain medical
expenses can be withdrawn from your traditional IRA without paying a 10% early
distribution tax.
For the answers to all of your IRA questions, call one of our Member Service
Representatives today at (973) 361-5225.
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8- What is the advantage of a Roth IRA?
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A Roth IRA can help you prepare for retirement and serve a number of other
purposes.
Preparing for Retirement – Roth IRAs serve as a great
retirement tool because qualified withdrawals, including earnings, are
tax-free.
First Home Purchase – If you’ve had your Roth IRA for at least
five years, you can use $10,000 towards the purchase of your first home tax-
and penalty-free.
Leave Funds to your Heirs – There are no mandatory withdrawals,
so you could leave money from your Roth IRA to your heirs tax-free.
Pay for College – Qualified educational expenses are penalty
free. There is no dollar limit and funds can be used for tuition, fees,
books, and supplies at a post-secondary institution.
Rainy Day Fund – You have access to your regular contributions
tax- and penalty-free at any time for any reason.
For the answers to all of your IRA questions, call one of our Member Service
Representatives today at (973) 361-5225.
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9-Is there anything else I need to know?
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Yes.There used to be a product called the Education IRA. Now it is called the
Coverdell Education Savings Account (ESA). It is very similar to an IRA, but
there are a few changes and you can get Coverdell ESA at PFCU
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10-How do Coverdell Education Savings Accounts work?
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Coverdell ESA are a smart way to help pay for education.
Save up to $2,000 per child per year in a Coverdell Education Savings Account
(ESA) here at PFCU. There are a number of benefits to a Coverdell ESA.
While your contributions are made with after-tax dollars, the earnings and
withdrawals are tax-free when used for qualified educational expenses.
And you or any of your family members can contribute to the account, up to the
$2,000 total annual limit.
You can continue saving each year until the child reaches 18. When the
money is withdrawn, it can be applied to a broad range of qualified expenses
for college and public or private K-12 education – including tuition, tutoring,
room and board, and even computer equipment.
A unique Coverdell ESA feature is your ability to transfer funds from one
child’s account to another child’s account in the same family.
To learn more about IRAs or to open an account, call us today at (973) 361-5225.
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