Today is the day to start saving for your financial future. The earlier you start, the more you will have accumulated in your nest egg for retirement. A safe and secure option is an Individual Retirement Account or IRA.
What is a traditional IRA? A traditional IRA is a special tax deferred savings plan designed to encourage you to save money for retirement.
Do I pay taxes on the earnings? No, because all the earnings you accumulate in your IRA remain tax deferred until you make withdrawals from the account.
Am I eligible to contribute to an IRA? Individuals who are under 70 ½ years of age for the entire year and have earned compensation or received alimony may contribute to a traditional IRA.
How much can I contribute? The amount qualified owners are permitted to contribute in tax year 2014 is $5500.00 Additional catch-up contributions can be made by qualified individuals over fifty.
Spousal IRA rules enable married couples filing jointly to contribute the maximum amount to their separate IRA accounts even if one spouse has little or no earned income. To qualify, their combined earned income must be equal to or greater than the total contributed amount.
How much is deductible from my taxes? If you and your spouse are not covered by an employer sponsored retirement plan, you will receive a full deduction regardless of your income.
Must I contribute every year? No. you can contribute any time, any amount.
What happens to my IRA if I die? The entire amount of your IRA will be paid to your beneficiary or beneficiaries.
How do I open an IRA? Call us at 712-328-2787 or 1-888-817-4500, or stop in the credit union and we can go over the benefits and investment options available to you.
Remember Your North Western Employees Credit Union accounts are safe and insured to at least 250,000.00 by the National Credit Union Administration.