April 4, 2019

An Individual Retirement Account (IRA) is an investment account specifically for saving money for retirement. An IRA can be an important part of the planning process and may offer tax benefits.

Here are six reasons you might consider contributing to an IRA. 

  1. You want a tax benefit now. The traditional IRA typically offers a Federal tax benefit now by contributing up to a certain amount each year on a tax-deferred basis, so you don’t pay taxes until the amount is distributed or withdrawn. Your taxable income is reduced by your contribution amount. Income and contribution limits apply.
  2. You want a tax benefit later. The Roth IRA offers tax-free earnings at retirement. Although not tax-deductible at the time of contribution, your earnings accumulate tax-free and remain tax-free at withdraw. Income and contribution limits apply.
  3. Your employer doesn’t offer a 401(k). Retirement planning shouldn’t be put off if your employer doesn’t offer a 401(k). Like a 401(k), opening a traditional IRA also lets you contribute pre-tax dollars to your retirement, up to the IRA annual limit. Plus, an IRA gives you the added benefit of investing in nearly anything you’d like, without the limitations of an employer’s options.
  4. You’re self-employed. If you run a business or you earn self-employment income, you can contribute to a SEP or Simple IRA. Like a traditional IRA, contributions are made with pre-tax money. You can also offer this option to employees.
  5. You want a comfortable retirement. Even if you’re not eligible for tax-deductible contributions, say you’re over the income limit or you’ve already maxed out an employer-sponsored 401(k), making IRA contributions can still help you plan for your retirement.
  6. Your employment situation has changed. If you have a 401(k) from a former employer, you likely aren’t able to add to it. Rolling it over into an IRA can give you more control and allow you to make contributions again. 

Not sure if an IRA is right for you? As the financial advisor through CUSO Financial Services, L.P.* (CFS) at 1st United Credit Union, I can help you develop a strategy for retirement that meets your needs. I'm available to talk by phone or we can meet at any 1st United branch. Schedule your appointment today

 

Brought to you by...

Rahil Machiwalla
CUSO Financial Services, L.P.*
Financial Advisor
(925) 598-4718
CA Insurance Number: 0G20361

Schedule an Appointment



*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the Credit Union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to Credit Union members. Insurance products and services are offered through CFS Insurance and Technology Services, LLC.

CFS representatives do not provide tax or legal guidance. For such guidance, please consult with a qualified professional.