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IRAs
What Is an IRA Savings Account?
Let’s start by defining the acronym. IRA stands for an individual retirement account. That means this account focuses on helping you save for your future after you retire. It does this by offering either a tax-deferred or tax-free way to save your money over the years leading up to your retirement. There are three main types offered to most people:
- Traditional IRA: This account type uses the tax-deferred method. Your money isn’t taxed until you take it out, which should be after you’ve retired. This means the tax rate should be much lower than when you initially put it in.
- Roth IRA: This account lets you grow your savings tax-free. By putting in money that you’ve already paid your taxes on, you won’t have to worry about it incurring new charges as it grows.
- Rollover IRA: This account is basically a traditional one but rolled over from another source. Typically, people with a 401(k) from a company they no longer work for will transform it into a rollover IRA, allowing them to continue to put money into it.
Why Should You Get an IRA Savings Account?
Too many people put off saving for retirement. They always think there’s more time or their 401(k) will cover them. Unfortunately, neither of these thoughts are usually true. If you want to have a stress-free retirement, you need to try saving as much as possible now, so money won’t be an issue later.
So take the time today to look into our options for IRA savings accounts. Feel free to compare our IRA savings account rates with others and ask us any questions you might have about what we offer. You can easily reach us through the info on our contact page. We want you to be able to plan for the best retirement possible, and all of that starts with the right account here at Democracy FCU.
