Traditional IRAs
A Traditional IRAs may provide you significant immediate tax savings, and due to the deferral of all taxes on earnings, the power of compound earnings is strengthened.
You can contribute to a Traditional IRA if you earn compensation and you will not reach age 70½ by the end of the year. Earnings in a Traditional IRA are not taxed until they are withdrawn. The ability to defer taxes on the earnings, and to withdraw in a year when you may be in a lower tax bracket, can mean more after-tax dollars for your retirement.
Roth IRAs
Roth IRAs offer unique and exciting savings opportunities, and they’ve gotten better over the years. Roth IRAs give many Crow Wing Power Credit Union members an easy and safe way to plan for the future.
Unlike traditional IRAs, contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free. Of course, you must conform to certain tax requirements to get this tax-free advantage.
IRA CD
An IRA CDis a low-risk investment account that combines a retirement account with a certificate of deposit (CD).
There is a minimum balance of $1,000. Dividends are paid at the end of each quarter and at maturity. IRA's are federally insured up to $250,000 by National Credit Union Administration (NCUA).
A dividend penalty will be charged for early withdrawal:
- 120 day early withdrawal penalty on a 1 Year IRA CD
- 180 day early withdrawal penalty on a 2 Year IRA CD
