Take a tax break with an IRA.
With a tax year coming to a close, it’s a great time to invest in an Individual Retirement Account (IRA) at Greenville Federal Credit Union. Even if you have an employer-sponsored retirement program, you may be eligible to open an IRA. Unlike most investments (depending on the IRA you choose), your contributions may be tax-deductible and will grow tax-deferred or tax free.
The credit union offers several types of IRAs to fit your financial profile and goals – and recent tax law changes have made them even more attractive. Contributions may be made through direct deposit or payroll deduction and extended throughout the year. All IRA deposits are federally insured up to $250,000 by the NCUA, a U.S. government agency.
A customized IRA can help you reach your retirement goals. For 2014, you can contribute up to $5,000 to your traditional IRA. Individuals 50 years of age and older may contribute up to $6,000. These limits apply to all IRAs except the Education Savings Account. If you are not active in an employer’s retirement plan, your contributions are tax-deductible.
If you earn income, you can open and contribute to a Roth IRA. Unlike traditional IRAs, you’re not required to take distributions after age 70 ½. Contributions and earnings may be withdrawn tax-free; however, contributions are not tax-deductible. Regular direct deposits may be scheduled to maximize you participation.
Education Savings Account (ESA)
You can contribute up to $2,000 per beneficiary to an ESA for higher education and qualified elementary and secondary school expenses. Investment earnings are tax-free; however, contributions are not tax-deductible.
Posted on Thu, January 1, 2015
by Catherine James filed under