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It’s Easy To Save For Retirement Or Your Children’s College Education With An IRA From Members 1st of NJ FCU
Individual Retirement Accounts (IRAs) are great investment options with more flexible eligibility requirements, provisions for penalty-free withdrawals and tax-exempt earnings potential.
The credit union offers two IRA products to meet your saving and investment needs. IRAs can be used to save for retirement, a first-home purchase or a college education.
- Traditional IRA: You do not pay taxes on your contributions until you withdraw the funds. Contributions can be made if you have earned income and are below the age of 70½. Before you turn 59 ½ you may be able to withdraw without a penalty to pay for higher education or a first home.
- Roth IRA: This investment product offers such benefits as tax-free earnings (dividends) at the time of withdrawal and no mandatory distribution date. You can make a withdrawal without penalty after five years. And, if you buy a first house or pay for education, it is tax free.
All credit union deposit accounts, including retirement accounts are insured by the NCUSIF for up to $250,000. There are also steps you can take to have higher account balances that are also insured. Ask for the details. The NCUSIF is the National Credit Union Share Insurance Fund. It is a federally insured program governed by the NCUA (National Credit Union Administration).