We're focused on your long-term financial well-being
There’s no wrong way to invest for your golden years, except not investing at all. Gather FCU can help you plan, save and invest to reach your retirement dreams. When it comes to your golf game, though, you’re on your own.
IRAs
One of the most common ways to save for retirement is with an Individual Retirement Account, or IRA. It’s a great way to manage your tax burden and make your money do the heavy lifting. There are several types of IRAs, and we know the ins and outs of them all.
Benefits
- Tax-advantaged retirement savings
- Competitive rates above standard savings
- No setup or administrative fees
- No monthly or annual maintenance fees
- $6,000 contribution limit per year (Under 50 yrs)
- $7,000 contribution limit per year (over 50 yrs)
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase a Share Certificate within IRA
- Minimum deposit of $25 or $500 based on account type
- Insured by the NCUA for an additional $250,000
Traditional IRA
Contributions you make to a traditional IRA are tax deductible, making it a great way to maximize your contributions now. However, you owe tax on any earnings once you start withdrawing at retirement. Think of it as the “save now, pay a bit later” plan.
- No income limits to open
- No minimum contribution in any year
- Contributions are tax deductible on state and federal income tax
- Earnings are tax deferred until withdrawal
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty
- Mandatory withdrawals at age 73
Roth IRA
You’ll owe taxes up-front on contributions to a Roth IRA. But, on the backend, you may be able to avoid taxes on your earnings. Think of it as the “pay now, save later” plan. This is just the tip of the pineapple crown. Let Gather help you explore your retirement options and find the one that’s right for you. Your nest egg awaits.
- Income limits to be eligible to open Roth IRA
- Contributions are not tax deductible
- Earnings are 100% tax free at withdrawal
- Principal contributions can be withdrawn without penalty
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penalty
- No mandatory distribution age
- No age limit on contributions, as long as you have earned income
Coverdell Education Savings Account (CESA)
Start planning for college today with a fee-free account created to help maximize education savings. Anyone can open an account and dividends grow tax-free.
- Save to fund your children's education
- No setup or annual fee
- Dividends grow tax-free
- Withdrawals are tax-free when used for qualified education expenses
- Designated beneficiary must be under 18 when contributions are made
- $2,000 maximum annual contribution per child
- Contributions are not tax deductible
- Certain income limits apply for contributions
