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IRA Share Savings

First Heritage offers both Traditional and Roth Individual Retirement Accounts.  An Individual Retirement Arrangement (IRA), commonly called an Individual Retirement Account, is a personal retirement savings plan available to anyone who receives taxable compensation during the year. For IRA contribution purposes, compensation includes wages, salaries, fees, tips, bonuses, commissions, taxable alimony and separate maintenance payments.

There is no minimum or required IRA contribution to start your IRA.  All it takes is a few minutes to start planning for your future!

Traditional IRA

The Traditional IRA is an account that allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year for which they are made.  You may be subject to a tax penalty if you withdraw from your IRA before you are age 59 ½ unless you meet certain penalty tax exceptions.  Once you reach age 70 ½ the IRS mandates that you take a minimum amount each year.

  • Annual contributions to your Traditional IRA may be tax deductible - consult your tax advisor.
  • You can contribute up to age 70½ if you have earned income.
  • Currently, the maximum annual contribution is $5,500 per individual.
  • Members who are 50 years and older are allowed to make "catch-up" contributions of $1,000 over the regular annual contribution limit.

Roth IRA

The Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a five-year holding period.  Another feature of the Roth IRA, you will never be required to take money out of your Roth IRA, no matter what your age.

  • Contributions to your Roth are not tax-deductible.
  • Contributions can be made to your Roth IRA after age 70½.
  • Currently, the maximum annual contribution is $5,500 per individual.
  • Members who are 50 years and older are allowed to make "catch-up" contributions of $1,000 over the regular annual contribution limit.

IRAs are insured up to $250,000 by the National Credit Union Administration, for more information please contact First Heritage.

Start early to maximize your return!

She saves $2,000 a year starting at age 25
Saves for 10 years
Makes no further deposits after age 35

At age 65, total dividends earned:

Total for retirement: $160,020
(At a rate of return of 6% APY* compounded monthly.)

He saves $4,000 a year starting at age 45
Saves for 20 years

At age 65, total dividends earned:

Total for retirement: $149,824
(At a rate of return of 6% APY* compounded monthly.)

The power of tax-free compounding

He earned less even though he saved twice as much for twice as long!

Moral of the story

Start a First Heritage Federal Credit Union IRA early, make regular contributions and allow your principal and interest to compound over a fairly long period of time.

It's easier than ever to participate in an IRA. Tax-law changes have expanded eligibility and created exciting new products. Call us today and we will explain the nature of these accounts in more detail and help you complete the forms necessary to establish your Traditional and/or Roth IRA.

For eligibility requirements, contribution limits, etc., visit www.irs.gov/Retirement-Plans.

*Annual Percentage Yield