Individual Retirement Accounts (IRAs) can help you plan for retirement and for higher education expenses for your dependents.
Individual Retirement Accounts
You may benefit from the tax savings and compound interest earnings of IRAs. Consult a tax advisor about the impact of contributions based on your individual tax circumstance. Some differences between an IRA and a regular savings account are:
- An IRA allows you to contribute money into an account that holds earnings, tax-deferred, until you choose to withdraw your money. When you withdraw money from the IRA, you will have to pay taxes based on the tax bracket you are in at the time of withdrawal. In most cases, when you retire and you are over the age of 59½, you will be in a lower tax bracket than when you are working. With a regular savings account, interest earnings are not tax-free.
- Regular savings accounts can usually be withdrawn from any time. With IRAs, withdrawals are limited and may incur a penalty.
- IRAs have a set limit of contributions that can be made each year. With a regular savings account, you are able to contribute as much as you can afford each year.
Contact us to open an IRA: (402) 492-9100 or (800) 882-0244, via email, or stop by a convenient location.
| FNCU | TRADITIONAL IRA View Rates » | ROTH IRA View Rates » | EDUCATION IRA / COVERDELL ESA View Rates » |
|---|---|---|---|
| Designed For: | People who expect to be in a lower tax bracket once they retire | People who expect to be in the same or higher tax bracket when they retire | People who want to help pay for the educational expenses of someone under the age of 18 |
| Eligibility | Any age, and still earning a paycheck | Any age, and still earning a paycheck (MAGI limits apply) | Anyone can contribute; the beneficiary must be under the age of 18 |
| Tax Features | Contributions are made with pre-tax dollars; your account grows tax-deferred | Contributions are made with after-tax dollars; your account grows tax-deferred; if you qualify, withdrawals may be tax free too | Your account grows tax-free; no tax on earnings used for eligible education expenses; may be used to pay for elementary or secondary school |
| Annual Contribution Limit | $7,000 $8,000 if over 50 | $7,000 $8,000 if over 50 | Up to $2,000, depending on your annual earnings |
Learn more with these resources:
- Traditional and Roth IRAs: An IRA can help you save more for retirement
- Traditional IRAs: Save for Retirement with a traditional IRA
- ROTH IRAs: Prepare for your future with a Roth IRA
- Transfers, Rollovers, and Conversions: Move your retirements savings without losing tax benefits
- IRA and Retirement Plan Distributions: Is it time to cash in on your retirement savings?
- Inherited IRAs: Understand your beneficiary distribution options
- Coverdell ESAs: Help the child in your life achieve a bright future
- Retirement Plans: Find the right retirement plan for your business
- SEP, SIMPLE IRA, and Individual(k) Plans: There’s a plan for your business
- Health Savings accounts: An HSA is more than just a savings account for medical expenses
- Health Savings accounts for Employer: An HSA completes your health benefits package
