IRAs are no longer just for retirement. FAFCU provides several types of IRAs to fit a variety of long-term savings needs throughout your life-and we also accept rollovers. Whether you want to start saving for your future, avoid taxes on a pension plan payout, or protect a lifetime of savings, an IRA may be just the right solution. Those who are just starting an IRA Saving Plan are automatically enrolled in FAFCU's IRA Club, which enables you to deposit as little as $10 per pay period.
Starting your retirement fund now is the best option for your future: you can actually contribute less money to your IRA and end up with more savings than if you wait. A traditional IRA offers tax-deferred interest until you withdraw your funds (as early as age 59 1/2) and a possible deduction from annual gross income on your federal income tax return. The maximum annual contribution is $4,000 for 2006-2007 and $5,000 for 2008.
The flexibility of a Roth IRA makes it appealing to all age groups. You can use for a variety of financial goals, from a first-time home purchase to retirement. Its tax-free status allows you to withdraw contributed funds penalty-free at any time, for any reason, and withdraw earnings penalty-free under a variety of conditions. The maximum annual contribution is $4,000 for 2006-2007 and $5,000 for 2008.
An Education IRA is a smart way to save for your child's college education. Although contributions to an Education IRA are not tax deductible, your withdrawals (including earnings) are tax-free if used for tuition, books, and other qualified higher education expenses. You can contribute until your child reaches age 18, and transfer funds between family members. Annual contributions cannot exceed $2000.
A Money Market Account is a smart way to earn competitive yields on your savings, while keeping your funds liquid. It pays a monthly dividend. FAFCU's Money Market Accounts allow up to six transactions each month. A $1,000 minimum balance is required.
IRA Term Certificates are a smart way to build either short- or long-term investment yields. These are available for 6, 12, or 18 months with the same great rates as regular share CDs. Account renewal is automatic unless otherwise specified.
Our Market Index Certificate is an insured IRA investment that bases your earnings on the performance of the Dow Jones Industrial Average Index. It gives you the financial benefits of stock market-like returns, but with the security of knowing that your principal is safe. Terms are 12, 36, or 60 months. A $500 minimum investment is required.