Q: When's the best time to start saving for your retirement? A: Now! Here's a little hint ... the sooner you start the sooner you can retire, and the more secure you'll be. West Coast Federal can help. Whether you choose a traditional or Roth option, an IRA is always a tax-advantaged1, low-cost account insured by the NCUA.
- Save for retirement with tax advantages1
- Earn competitive dividends higher than regular savings
- Pays monthly dividends
- Available in traditional and Roth
- Annual contribution limits apply
- $1,000 annual "catch up" contributions allowed for ages 50 and better
- No set up fees
- No minimum balance requirements
- Federally insured
Traditional vs. Roth
There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.
- No income limits to open
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax1
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty2
- Mandatory withdrawals at age 70½
- Prepare for qualified medical expenses
- Income limits to be eligible to open Roth IRA3
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal1
- Principal contributions can be withdrawn without penalty1
- Withdrawals on interest can begin at age 59 ½
- Early withdrawals on interest subject to penalty2
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
Higher education can become a financial burden. A Coverdell Education Savings Account (ESA) is designed to help lighten the load.
- Set aside funds for your child's education
- Dividends grow tax-free3
- Withdrawals are tax-free and penalty-free when used for qualifying education expenses3
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an ESA, certain income limits apply3
- Contributions are not tax deductible
- Contributions are allowed regardless of traditional or Roth IRA participation
- $2,000 maximum annual contribution per child
- The money must be withdrawn by the time he or she turns 30
- The ESA may be transferred without penalty to another member of the family
1Subject to some minimal conditions. Consult a tax advisor.
2Certain exceptions apply, such as healthcare, purchasing a first home, etc.
3Consult a tax advisor.