Invest in your future. An Individual Retirement Account (IRA) provides either a tax-deferred or tax-free way to save for your retirement. Don't wait until it is too late - plan for your future with a Members Trust Federal Credit Union IRA. There is no contribution too small and you can contribute on your own schedule.
Members Trust offers four different IRA options:
The Traditional IRA allows tax-deductible contributions of up to $5,000 per year, or more if you’re over age 50. The money you contribute annually to your Traditional IRA is deducted from your yearly income, so it reduces your tax liability. However, if you need the money once it in is an IRA, the withdrawal is subject to income taxes and a 10% penalty if you are younger than 59 ½. However, you can withdraw the money penalty free (taxes will still be imposed) if you use the money for a first-time home purchase, higher education expenses, medical expenses, health insurance premiums and qualified reservist distributions.
The Roth IRA is non tax-deductible way to save for retirement, but it offers you greater flexibility. Contributions can be withdrawn at any time without being subject to a penalty or tax, however the earnings on the account are subject to penalty and taxes. The same benefits regarding withdrawing money for first-time home purchase, higher education expenses, medical expenses, health insurance premiums and qualified reservist distributions applies to Roth IRAs.
Start saving now to make your child’s education expenses a little lighter. A Coverdell Education Savings Account is a great way to save for education expenses. The total contributions can’t be more than $2,000 in any year, and the beneficiary has to be under 18, or be a special needs beneficiary. With rising education costs, Coverdell Education Accounts are a great way to combat the rising cost of educating your own kids or grandkids. Annual contributions, rollovers, and transfers are all accepted.
A Simplified Employee Pension or SEP is a retirement plan designed especially for individuals and small business owners. Sole proprietorships, S and C corporations, partnerships and LLCs qualify for this retirement account. Contributions to a SEP are tax-deductible, which will lower your tax liability, in the current year. This IRA is taxed at ordinary income tax rates when qualified withdrawals are taken after age 59 ½.