A brighter tomorrow starts with planning today
Weigh your IRA options (Information courtesy of the IRS)
|Features||Traditional IRA||Roth IRA|
|Who can contribute?||You can contribute if you (or your spouse if filing jointly) have taxable compensation but not after you are age 70½ or older.||You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2017 and 2018 limits).|
|Are contributions deductible?||You can deduct your contributions if you qualify.||No|
|How much can I contribute?||
The most you can contribute to all of your Traditional and Roth IRAs is the smaller of:
|What is the deadline for contributions?||Your tax return filing deadline (not including extensions).|
|When can I withdraw money?||Anytime|
|Am I required to take minimum distributions?||You must start taking distributions by April 1 following the year in which you turn age 70½ and by December 31 of later years.||No, not if you are the IRA's original owner.|
|Are my withdrawals and distributions taxable?||Any deductible contributions and earnings you withdraw or that are distributed from your Traditional IRA are taxable. If you are under age 59½, you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.||No, if it's a qualified distribution or a withdrawal that is a qualified distribution. Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.|
We'll help you plan for your golden years with our IRA options, both of which start earning at highly competitive rates.
Before you choose an IRA, consult with your tax professional to receive full details about the accounts' tax implications, exceptions and qualified distributions. Open your IRA today by calling one of our friendly Member Service Representative at 808-842-9660.
Members' shares are insured to at least $250,000 and are backed by the full faith of the United States Government. IRA shares are insured separately up to $250,000. For more detailed information, call your credit union at 808-842-9660 or log on to www.ncua.gov and click on "Insurance Coverage Tool Kit."