Retirement planning can be a confusing landscape. We’ll do our best to explain each option so that you can plan for a solid financial future.
We recommend that you consult your tax advisor on how an IRA option might benefit your financial situation before opening an individual retirement account.
A traditional individual retirement account (IRA) with Fond du Lac Credit Union can be invested in a Savings or Certificate account. Unlike the Roth IRA, the only criterion for being eligible to contribute to a traditional IRA is sufficient income to make the contribution. Contributions may be tax-deductible.
However, there are strict eligibility requirements based on income and filing status as well as the availability of other retirement plans. Transactions in the account, including dividends, are not subject to tax while still in the account. Upon withdrawal from the account, however, funds may be subject to federal income tax — unlike a Roth IRA, in which contributions are never tax deductible but qualified withdrawals are tax-free. The traditional IRA also has more restrictions on withdrawals than a Roth IRA.
Unlike a traditional IRA, contributions to a Roth IRA are never tax-deductible, though qualified withdrawals are tax-free. The Roth IRA’s advantages include its tax structure and fewer restrictions on the investments that can be made in the plan than many other plans.
How to Open an Individual Retirement Account (IRA)
Meet with one of Fond du Lac Credit Union’s member consultants to open an individual retirement account (IRA). Walk-ins are accepted, although we prefer appointments.
Call 920-921-1123 to make an appointment.