One of the biggest challenges facing all workers is assuring our financial security in retirement. Today, and in the future,
we will be forced to rely more heavily on our own resources to support
ourselves.
The federal government has authorized a special savings plan to help accumulate funds for your retirement. A Traditional Individual Retirement Arrangement (IRA) is available at your
credit union.
A Traditional IRA gives you:
Independence. They can be opened and funded without any employer participation.
Immediate tax benefits. Contributions and/or earnings are tax-deferred until retirement.
Accessibility. Funds are always available, something not generally true of employer plans.
Flexibility. There is no minimum contribution in any year.
Am I ever required to take funds from my Traditional IRA? Beginning in the year that an IRA holder turns age 70½, distributions from an IRA must begin. These distributions are based
on a formula consisting of: the person’s IRA account balance, divided by their life expectancy, either singly or jointly with their IRA beneficiary. Since the purpose of
an IRA is to provide for retirement, IRA holders who fail to take their required distributions are subject to
a penalty.
