This type of retirement plan offers tax-deferred earnings, with the possibility for tax-deductible contributions. Wage earners (or those who will file taxes jointly with a spouse who earns wages) and will not reach age 70½ by the end of the year may contribute to this plan. Members may deposit up to $4,000 per year, with a higher limit allowed for those age 50 and older.
Open your Traditional IRA with an IRA Share Certificate or an IRA Contributory Savings Account.
IRA Share Certificate
A deposit of $500 will get you started with this CD, earning a fixed dividend rate of return for a fixed period of time. Dividend earnings are tax-deferred, but keep in mind that penalties apply for most early withdrawals.
IRA Contributory Savings Account
Dividend earnings are tax-deferred with this account, offering a variable dividend rate and the ability to make deposits or withdrawals at any time without penalty from Global Credit Union (IRS penalties apply for most early withdrawals). All it takes is $100 to open and you’re on your way to retirement savings.
Whatever your needs and goals are, check with your tax adviser or financial planner to make sure you’re making the most of your investment.
