In this blog, our Harlingen Credit Union explores how VFCU’s IRA Certificates can provide you with a stable and reliable investment opportunity to help you build a brighter future. Let’s delve into the benefits and features of VFCU’s IRA Certificate offerings and how they can complement your retirement savings strategy.
What is an IRA?
An Individual Retirement Account (IRA) is an investment account with tax advantages designed to help you save for retirement. Depending on the type of IRA you choose, your investments can grow tax-free over time. However, there are annual contribution limits that you need to be aware of.
Why Should I Invest in an IRA?
So why should you invest in an IRA? Well, the tax benefits are certainly a big draw. With a Traditional IRA, you receive tax deductions based on your contributions and pay taxes on withdrawals during retirement. On the other hand, a Roth IRA offers no immediate tax benefits, but your withdrawals during retirement are tax-free, making it a great option for long-term investors.
What are the Different Types of IRAs?
Now, let’s explore the different types of IRAs available.
- The traditional IRA allows for tax-deductible contributions.
- Educational IRAs have tax advantages and are opened for children to pay for education expenses.
- In contrast, the Roth IRA features contributions that are not tax-deductible, but withdrawals in retirement are tax-free.
- Share IRA Certificates combines the tax advantage of a roth and traditional IRA with the security of a share certificate.
How to Open a IRA?
Speaking of contributions, you should know there is a minimum to open each of these IRA contributions. Each certificate offers 12 – 30 month terms, except for the Share IRA Certificate.
- IRA Certificates with at least $1000 minimum to open.
- Share IRA Certificates with at least $25 minimum to open.
- Roth IRA Certificates with at least $1,000 minimum to open.
- Educational IRA Certificates with at least $500 minimum to open.
Ready to take the next step? VFCU is here to support you on your Harlingen savings journey with a range of services tailored to your needs.
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