Individual Retirement Account FAQ
Q: Are there tax benefits to saving in an IRA?
A: Contributions to your Traditional IRA account may offer some tax savings and deductibles based on your age, the amount deposited, and the timing of the deposited funds.
Q: What’s the difference between a Roth IRA and a Traditional IRA?
A: Traditional IRA accounts are tax-deferred, meaning that taxes are taken from your money after they are withdrawn from the account. In contrast, a Roth IRA uses previously taxed funds to finance your account, making them tax-free upon withdrawal.
There are advantages to Roth Individual Retirement Account Savings and Certificates:
- Tax-free withdrawals at retirement
- Competitive interest rates
- Open a Roth IRA at any branch
Q: When can I start withdrawing money from my IRA?
A: You may withdraw funds from your IRA at any age, but bear in mind that there are fines and fees required if you choose to do so before the age of 59½. Once you reach the age of 72, you will be required to withdraw regular sums of money from your account. For more information, please reach out to your Arbor Financial branch.
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*Annual Percentage Yields (APYs) earned on certificates are calculated by the actual daily balance method and are paid and compounded monthly. Minimum balance of $500 is required. Early withdrawal penalties apply and will reduce earnings. Rates and offers subject to change at any time without notice.
**During a CD rate boost promotional offer, CDs receive the boosted rate if at least $25,000 of the certificate amount is not currently on deposit with Arbor Financial Credit Union, and the higher rate will be paid on the full certificate balance. Offer subject to change. Federally insured by the NCUA.