Individual Retirement Account (IRA)
IRAs are a great way to save for retirement and for a child’s education. There are many types of IRA accounts to choose from. The following are the IRA investment options available at KTCCU:
This account lets you defer taxes on the earnings of your contribution until they are withdrawn. Certain contributions may be tax deductible in the year they are made. If you are younger than 70 ½ for the entire year and have earned income (or your spouse has earned income), you are eligible to establish a Traditional IRA. The IRA investment can be as a savings account or certificate of deposit to maximize your earnings on your retirement dollars.
The Roth IRA allows only nondeductible contributions and features tax-free withdrawals for specific distributions reasons after a five-year holding period. Roth contributions are nondeductible and taxed in the year they are earned. If you except to be in a higher tax bracket when you retire, you may benefit from a Roth IRA rather than a Traditional IRA.