IRAs
Retirement age is coming...will the money to retire be there when it does? At Eastern, we offer several IRA options to help you make sure the money will be there when you need it. And in every case, your investment in an IRA at Eastern is federally insured up to $250,000 by NCUA.
At Eastern, you can invest in either a RA certificate or IRA share savings. IRA certificates are available in terms of 12 to 60 months, and can be opened with as little as $1,000. Don't quite have enough money for a certificate yet? Accumulate those funds in an IRA share savings account until you do.
What's the best way to make sure you're saving the money you should for retirement? Direct Deposit! Have a little taken out every month and put directly into your IRA share savings account. Then, when you have enough accumulated, pop it over into an IRA certificate!
Types of IRAs
At Eastern, you can put your IRA certificate or IRA share savings into a Traditional IRA or Roth IRA for retirement, or into a Coverdell Education Savings Account for educational expenses. Be sure to consult with your tax advisor to find out which option is best for you.
Traditional IRA
With a traditional IRA, you may receive a tax deduction in the year you make a contribution. When you retire, your withdrawals are taxed at, for most people, a lower tax bracket since you'll likely be earning less money. Some people are not eligible for a tax deduction for a Traditional IRA, so check with your tax advisor to be sure.
Roth IRA
With a Roth IRA, you do not receive a deduction on your taxes in the year you make the contribution, but you also are not taxed at retirement time when you make withdrawals. That means your earnings grow tax-free!
Coverdell Education Savings Account
This is a great way to save for education, whether for current expenses or long-term expenses. You do not receive a current-year tax deduction for your contributions, but if you use the proceeds for qualified education expenses, your investment grows tax-free. See the link at right for more information.
