Planning for your retirement can not begin too
soon. And with compound interest, the earlier you start that more
you'll have when it's time to retire. The U.S. Government has
provided you and your family a number of retirement savings
vehicles. Honda Federal Credit Union offers you some conservative
and well-protected retirement savings products.
Which IRA is best for you?
Selecting the appropriate IRA for your needs
depends upon your individual economic situation and the taxes that
you will pay on each type of IRA. The table below highlights some of
the differences. We recommend that you consult with a professional
tax advisor to select your best option.
| |
Traditional
IRA |
Roth
IRA |
| Who should open
an IRA? |
Households who expect to be in a lower tax bracket
in retirement
Households who need the tax deduction
|
Households who expect to be in the same or higher
tax bracket in retirement
Households between 18-44 years old
|
| Who should convert their IRA? |
Households who are within five years of retirement
should not convert
Households who cannot afford to pay taxes to
convert from other savings or current earnings should
not convert
|
Households who can afford to pay taxes to convert
from other savings or current earnings
Households who do not need IRA funds for living
in retirement and want to pass funds on to their
heirs
|
Traditional IRA/Roth IRA/Coverdell ESA Savings Accounts
Start accumulating
retirement savings here. Rollover funds from your prior employer's
401K or other retirement plan and preserve your tax deferment.
Traditional IRA/Roth IRA/Coverdell ESA Savings Certificates
When you're ready
for a higher return on your Traditional IRA, Roth IRA or Coverdell ESA take
advantage of our IRA Savings Certificates. IRA Savings Certificates
enable you to lock-in higher dividend rates for a fixed term. We
offer the following terms:
- 1 year
- 2 years
- 3 years
- 5 years
|
