Wherever you are on the road to retirement, we have your best interests at heart. With as little as five dollars you can open a Traditional, Roth, Coverdell (Education), or SEP Individual Retirement Account (IRA) and earn dividends. These funds can reduce your present tax burden. We also don’t charge start-up costs or maintenance fees and recommend automatic deposits. The 2020 traditional and Roth IRA contribution limits have increased to $6,000 annually, and $7000 annually if you are age 50 or older. Educational IRA’s have increased to $2,000 annually. The SEP IRA contribution limit is up to 25% of your salary up to $57,000 (subject to cost-of-living adjustments), whichever is less. If you don’t already have an IRA we can help find the best option for your needs.
Frequently Asked Questions
Make every cent you earn count and create a productive retirement plan. Traditional IRA’s offer tax-deferred earnings and the possibility for tax-deductible contributions. This means you’re not taxed until these earnings are withdrawn. The ability to defer taxes and withdraw in a year when you may be in a lower tax bracket can mean more after-tax dollars in retirement.
Want to boost your retirement savings? A Roth IRA can do just that. Although contributions to a Roth IRA are not tax deductible, earnings can be withdrawn tax free, along with the money you contribute to the Roth IRA. To take advantage of these generous incentives, you must conform to certain tax requirements to get the tax-free advantage.
Whether college is two years away or ten, make saving for tuition a little easier. A Coverdell ESA is an Educational IRA designed to help you pay for your child’s educational expenses. Although your contributions aren’t tax deductible, this IRA offers you the potential for tax-free withdrawals, including earnings. We give it an A.
If your business is small, your retirement plan doesn’t have to be. A SEP IRA (Simplified Employee Pension) is a retirement plan popular with many small business owners and self-employed individuals. A SEP IRA plan provides business owners with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings. Contributions are made to an Individual Retirement Account set up for each plan participant.
*Zeal Credit Union is not licensed to offer tax advice. Please consult a tax advisor about your specific situation, or for information on any tax incentives you may be eligible for.