Thinking about your future? We are, too.
Introduction
Whatever your plans are for retirement, it’s important to have a savings strategy in place. An Individual Retirement Account (IRA) is a convenient, cost-effective way to achieve your goals, offering flexibility and tax advantages you can’t get anywhere else.
Maybe you want to defer your taxes until retirement when your tax bracket will likely be lower. In that case, a traditional IRA might be right for you. How about enjoying tax-free returns later on by paying them now through a Roth? No problem. You can even use the money for education needs through a Coverdell Education Savings Account. It’s as simple as a payroll deduction.
Regardless of which plan you choose, you can expect competitive returns, convenient accessibility, and peace of mind that your future is in good hands.
For support with Traditional and Roth IRAs, Coverdell Accounts, and Health Savings Accounts, call our Contact Center at 800.242.2120 or email IRASpecialists@visionsfcu.org.
Things you should know
According to federal law, you can contribute the following.
Contribution limits* for 2024 and 2025 tax years:
- $7,000 a year per individual
- $14,000 for couples filing jointly
- $8,000 for investors over 50
- $16,000 for couples, both over 50
- $2,000 for Coverdell Education Savings Accounts
You have until April 15, 2025 to maximize your contributions for the 2024 tax year.
*For informational purposes only. For tax advice, please speak with a tax professional.
Traditional IRA Changes Due to the SECURE Act 2.0
The SECURE Act 2.0 went into effect January 1st, 2023, and with it came changes to Traditional IRAs. The SECURE Act – or Setting Every Community Up for Retirement Enhancement – and SECURE Act 2.0 primarily made changes to Required Minimum Distribution (RMD) and contribution ages.
How the law changes Required Minimum Distribution ages for Traditional IRAs:
- The SECURE Act 2.0 sets the the RMD age to 73
- Members who were age 72 in 2022 (b. 1950 or earlier) will still need to withdraw their RMD in 2023, and continue each year. The new law does not change anything for those members
- Members who turn 72 in 2023 (b.1951) will not be required to withdraw their RMD this year. Their requirement will begin when they turn 73
How the law changes contribution ages for Traditional IRAs:
- The SECURE Act removed the age limit at which an individual can contribute to an IRA
- Note, that you must have earned compensation during the year of your contribution. If you are retired, you may not make IRA contributions
IRA Resources
Helpful reference material regarding IRAs and enrollment (click to expand):
For support with Traditional and Roth IRAs, Coverdell Accounts, and Health Savings Accounts, call our Contact Center at 800.242.2120 or email IRASpecialists@visionsfcu.org.
IRA and HSA Resources for Business Owners
Helpful reference material regarding retirement plans and health savings accounts for employers (click to expand):
Business Services: Visions Federal Credit Union cannot open accounts for local governments or businesses/organizations that deposit public and/or municipal funds.
Retirement Calculators
- Am I saving enough for retirement?
- Which savings or income source will be the largest?
- How much can I contribute to my retirement plan each year?
- What will my income be after I retire?
- What will my expenses be after I retire?
- What if I underestimate my expenses?
- Which savings should be used first?
- How advantageous is increasing my savings?
- How much of an effect can inflation have?
- How much will Social Security provide after retirement?
- How will retirement affect my expenses?
- How will this account be used?
- What happens if tax laws change?
- What if Social Security no longer exists?
- What will I earn with this account?