Individual Retirement Accounts - IRA

WHY SAVE FOR RETIREMENT?

When you retire, you want to be sure you can  cover all of your expenses and live comfortably. So, it is important to think about saving for your future to cover such expenses as:

  • Living expenses
  • Medical expenses
  • Travel needs
  • Helping your children and grandchildren

Open you IRA today for peace of mind tomorrow!

WHY START NOW?

The earlier you start saving, the more money you will have available when you retire.  This is not only because you have more time to contribute money to your account, but more importantly, you have the advantage of compound interest.  This means that you earn interest not only on your contributions, but also the interest you earn over time.

WHAT IS AN IRA?

A Latino Credit Union Individual Retirement Account (IRA) has tax advantages that allow members to save money during their employment years to cover expenses after retirement. The credit union offers three IRA products: a Roth IRA, a traditional IRA and a Simplified Employee Pension IRA (SEP IRA).

BASIC INFORMATION

Individuals can use Roth and Traditional IRAs to save for their own retirement. To open one of these accounts, you or your spouse must have earned income (including salary, fees, bonuses, commissions you earn and/or taxable alimony).

ROTH IRATRADITIONAL IRA

Funds deposited into a Roth are after-tax dollars. This means that you do not deduct contributions from your taxes.  Since you already paid those taxes, you can withdraw the money you have contributed at any time with no taxes or penalties.  The money you earn in interest is generally tax-free.

A Roth IRA can also be a great way to save for your child’s education!

Funds deposited are pre- tax dollars, immediate tax benefits for you.  This means that you might be eligible to deduct the amount you contribute to your IRA from your income and pay less taxes.  

You do not pay taxes on the money in your IRA account until you withdraw the money later. 

With both IRA accounts, you might be eligible for a Retirement Saver’s Contribution Tax Credit. 

A SEP is like a traditional IRA but aimed at small business  owners or self-employed individuals. The plan allows employers to make contributions towards their own and their employees’ retirement. Ask your representative for more information.

For more detailed information click here

WHY WORK WITH LCCU?

Latino Credit Union is a solid and reliable financial institution that has worked for over 10 years for the benefit of its members. When you work with LCCU, you can be sure you will receive quality, personalized service every step of the way.

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