BFSFCU wants to help you build your retirement income and help you realize your retirement goals and dreams. That is why we offer both Traditional and Roth Individual Retirement Account (IRA) Share Certificates (SC) and Savings Accounts.
With our IRA Savings Accounts, there is no minimum balance requirement for these accounts and you are free to make deposits to build your savings. We also offer a variety of terms on our IRA SCs — see our rates table at the bottom of this page.
Members who file U.S. income tax returns and have earned income may contribute to an Individual Retirement Account (IRA). Individual Retirement Accounts are insured by the NCUA for up to $250,000. IRA contributions may be tax-deductible depending upon:
Please consult your tax advisor for information on whether your IRA qualifies for a tax benefit.
Our WealthBuilder IRA Share Certificate is a fixed-rate, two-year time deposit account that combines competitive returns with the security of a guaranteed investment. Start with a $1,000 initial investment and add monthly contributions of at least $50, and watch how fast your retirement account grows.
Traditional IRAs are a great way to invest in your future. With a Traditional IRA, your retirement savings will grow tax deferred and your contributions may be tax deductible (please consult your tax advisor). You are eligible to open and contribute to a Traditional IRA if you or your spouse received taxable compensation during the tax year.
For 2020, you can contribute up to $6,000.00 to your Traditional IRA if you are under age 50 or up to $7,000.00 if you are age 50 or older. You may continue to make contributions for year 2020 until May 17, 2021.
You may contribute to your Traditional IRA in several ways:
You may withdraw funds from your Traditional IRA account at any time, but you will incur a 10% early withdrawal penalty from the IRS if you have not yet reached age 59 and one-half (some exceptions may apply). This penalty is separate from the penalty charged by BFSFCU for early withdrawals; please refer to the Truth-in-Savings disclosure. At age 72, you are required to take the minimum distribution.
With a Roth IRA, your retirement savings will grow tax deferred. Although your contributions to a Roth IRA are not tax-deductible, qualified distributions from your Roth IRA will not be included as part of your taxable income. You are eligible to open and contribute to a Roth IRA if you received taxable compensation during the tax year. There is no age limit to opening a Roth IRA; however, there are limitations based on the modified Adjusted Gross Income (AGI) of you and your spouse.
For 2020, you can contribute up to $6,000.00 to your Roth IRA if you are under age 50 or up to $7,000.00 if you are age 50 or older. You may continue to make contributions for year 2020 until May17, 2021.
You may contribute to your Roth IRA in several ways:
Withdrawals from Roth IRA accounts are tax-free (since you were already taxed on your contributions). You may withdraw funds from your Roth IRA account at any time, but you will incur a 10% early withdrawal penalty from the IRS if you have not yet reached age 59 and one-half or the IRA has been open for less than five years (some exceptions may apply). This penalty is separate from the penalty charged by BFSFCU for early withdrawals; please refer to the Truth-in-Savings disclosure.
Social Security benefits will probably be an important source of income for most Americans. This article provides details on how benefits are calculated and what benefits may be.
Many teenagers have income from summer or part-time jobs. Establishing a Roth Individual Retirement Account may be the beginning of a secure financial foundation. It can also help the teen develop some good savings habits.
The volatility of the stock market and the uncertainty over Social Security is causing many to re-evaluate how to save for retirement, when to retire and how to live after retirement. There are several things to consider as you plan for a financially secure retirement in light of the current stock market