Preparing for Retirement
Investing in an IRA can help set you up for success in retirement.
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Start saving for your future.
Opening a Traditional or Roth IRA (Individual Retirement Account) is a great way to prepare for retirement. Whether you’re just starting your career or plan to retire soon, we can help make the most of your retirement goals with an IRA to suit your needs!
Traditional IRA
A Traditional IRA is a tax-deferred retirement savings account funded with before-tax earnings, which means that you’ll save money on your taxes as you fund the account during your working years, and then pay taxes, ideally at a lower tax rate, on the funds you withdraw after retirement.
Roth IRA
Unlike traditional IRAs, a Roth IRA is funded with after-tax earnings, so your money grows tax-free. Since you’ve already paid taxes on the earnings used to fund your Roth IRA, your savings are not taxed when you withdraw your money after retirement.
Comparing Traditional and Roth IRAs
Traditional IRA
- No income limits to open
- No minimum contribution in any year allowing flexibility
- Contributions are tax-deductible on state and federal income taxSee your tax advisor for details.
- Withdrawals can begin at age 59½
- Early withdrawals subject to penaltyCertain exclusions apply, such as health care, purchasing home, etc. Consult your tax advisor for details.
- Mandatory withdrawal by 73
- Earnings accumulate tax-deferred until distribution
- Federally insured by NCUAThese products are brought to you by Arkansas Federal Credit Union. Your savings at Arkansas Federal are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government by the National Credit Union Administration (NCUA), an agency of the federal government.
Roth IRA
- Income limits to be eligible to open Roth IRA
- Contributions are NOT tax-deductible
- Principal contributions can be withdrawn without penaltySee your tax advisor for details.
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penaltyCertain exclusions apply, such as health care, purchasing home, etc. Consult your tax advisor for details.
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
- Earnings accumulate tax-free and remain tax-free upon distribution
- Federally insured by NCUAThese products are brought to you by Arkansas Federal Credit Union. Your savings at Arkansas Federal are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government by the National Credit Union Administration (NCUA), an agency of the federal government.
