Take proactive strides toward security with an IRA, which offers higher returns than regular savings.
You also could get tax advantages to help you save for retirement. Talk with a Georgia Heritage FCU representative about which IRA plan is right for you.
IRA Advantages
- No setup or maintenance fee
- Different plans to suit various financial situations
- $500 minimum opening deposit
Traditional vs. Roth
Traditional IRA
- Contributions and earnings may be tax deductible
- Taxes are deferred until withdrawn
- Contributions allowed up to annual limits
- Anyone with earned income can contribute up to age 70 1/2
- Required minimum distribution upon reaching age 70 1/2
- Competitive dividend rates
- Dividends compounded and paid monthly
- Minimum balance requirement $500
Roth IRA
- Regular contributions can be withdrawn tax-free and penalty-free at any time
- Does not have distribution requirements at age 70 1/2
- Dividends compounded and paid monthly
- Minimum balance requirement $500
Coverdell Education Savings
- Eligible to contribute if Modified Adjusted Gross Income is less than limits set by Congress
- Contributions not allowed after the beneficiary reaches age 18 (except for special needs beneficiaries)
- Can contribute $2,000 per child each year; limit applies to all ESAs for same child
- No one can deduct contributions
- Withdrawals for qualified education expenses are tax-free if made before beneficiary reaches age 30
- Funds can be transferred from one child to another within the same family
- $500 minimum balance
- Dividends compounded and paid monthly
(Contribution and deductibility limits change frequently. Consult your tax professional regarding your individual circumstances.)
