An IRA from Como Northtown is one of the smartest savings accounts available. Not only does it compound dividends monthly, but the interest income is TAX DEFERRED until withdrawn. Also, depending on your situation, your IRA deposits may also be Tax Deductible.
Como Northtown offers an IRA Savings Account and IRA Certificates at competitive dividend rates and terms. In addition, to make contributing easy, you can have regular amounts automatically deposited to your IRA from your checking or savings account or through payroll deduction. Rollovers and transfers are also available for those wishing to transfer their retirement plan or another IRA to a Como Northtown IRA. Traditional Individual Retirement Account (IRA)
Traditional IRAs may provide important tax advantages to individuals seeking to invest for retirement. Depending on your specific situation, contributions may be wholly or partially tax deductible. In addition, all earnings in a Traditional IRA grow tax-deferred. This means that you will not have to pay taxes on deductible contributions and earnings until money is withdrawn from the account (called a "distribution"). This usually occurs after retirement, when your income and taxes may be lower. Tax-deferral allows your investments to grow significantly faster than a similar investment in a taxable account.
Roth Individual Retirement Account (Roth IRA)
Roth IRAs are similar to Traditional IRAs, but they operate somewhat in reverse. The main difference is that contributions to Roth IRAs are not tax deductible—making contributions will not reduce your taxable income. Contributions are made with after-tax dollars. As a result, distributions, including earnings, are not included in your taxable income. This means that distributions will be completely tax-free, subject to certain restrictions.
Coverdell Individual Retirement Account (Education IRA)
A Coverdell IRA is exclusively for the purpose of paying the education expenses for a child (the designated beneficiary of the account). Parents, grandparents, other family members, friends, and a child him/herself may contribute to the child's Coverdell IRA, provided that the total contributions during the taxable year do not exceed the allowable limits. Contributions cannot be accepted after the child reaches his/her 18th birthday. Amounts deposited in the account grow tax-free until distributed, and the child will not owe tax on any withdrawal from the account if the child's qualified education expenses at an eligible educational institution for the year equal or exceed the amount of the withdrawal. Contributions are not tax deductible.
For more detailed information on the different types of IRA's offered at CNCCU, please contact one of our IRA specialists. To determine IRA tax implications, limitations and legal restrictions, you may wish to consult a qualified tax advisor and check applicable tax laws.
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