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Retirement Accounts

 

One of the greatest challenges facing Americans today is ensuring the financial well-being and security of your family throughout your retirement years. With uncertainty over the adequacy of social security growing daily, it’s increasingly necessary to rely on your own savings plans and resources to support your future retirement plans.

At Faith Connection FCU, we offer 2 long term savings accounts geared to help you save for your family’s future: Traditional IRAs and Roth IRAs. Three months up to 60 month share IRA certificates are also available. A minimum of $1,000.00 is required to set up a share certificate.

Traditional IRAs

Traditional IRAs are valuable long-term savings tools that can provide safety and security for you and your family. Your contributions can be deducted from your taxable income, reducing the income taxes you are currently paying.

Traditional IRA Features:

  • Can be opened and funded without any employer participation
  • Contributions and/or earnings are tax-deferred until retirement .
  • Possible deductions based on retirement plan participation and income 59 ½ years
  • Completely flexible as there is no minimum contribution in any year
  • Members under age 73 years may contribute a maximum of $5K per year
Faith Connection FCU offers a Traditional IRA that pays competitive market rates. No minimum amount is required to set up a Traditional IRA savings account.
Current Rates
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Roth IRAs

Roth IRA Features:

The money you contribute to a Roth IRA has already been taxed. So the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines.

Roth IRAs offer you a very easy way to plan for the future of you and your family. Your contributions are not tax-deductible but the earnings within a Roth IRA are tax-free as long as your funds have been in the account for at least 5 years and you are either over 59½ years of age, disabled, or buying your first home.

There is no 73 year age limit on making contributions. You do, however, need earned income, which is defined the same as for Traditional IRAs. As long as you satisfy the Roth IRA requirements, you may contribute to a Roth IRA, even after the year in which you reach 73 years.

Current Rates

*The Credit Union provides no legal advice to members, and provides the foregoing information from a reliable resource to give our members a basic understanding of these services. You should consult with your tax or legal advisor regarding any particular and the current status of applicable federal and state laws.