IRAs

What is an IRA?

An IRA is your own individual retirement account. Think of it as a special savings account for your retirement, but with special tax benefits that make it better than a regular savings account. There are two types of IRAs, Traditional and Roth.

Traditional IRA: Deduct now, pay taxes later

When you contribute to an IRA, that amount is tax deductible. This not only provides savings for your future, but can significantly lower your tax bill this year.

Roth IRA: Pay taxes now, earn interest and deduct tax-free later

With a Roth IRA, you still pay taxes on the amount you contribute, but withdrawals from the account, including the earnings, are tax-free.

Which IRA is right for me?

Which IRA is best depends on your individual needs. In general, if you expect to be in a higher tax bracket in the future, then a Roth is better. If you expect to be in the same or lower tax bracket, then a traditional is better. Of course, having both kinds of IRAs is the safest method to plan for any eventuality in your future.

For assistance, we offer this IRA comparison chart, which outlines a comparison of Traditional and Roth IRA, including basic guidlines on contribution limits and rules.

We also recommend contacting one of our representatives, who will be happy to help you determine what is best for you.


Investments

U.S. Savings Bonds

  • Issued by the US Gvernment and backed by its full faith credit
  • Face value ranges from $50 to $10,000
  • Types of Bonds: EE Bonds and I Bonds
  • Interest is exempt from state and local taxes

Rollover your 401k - It's easier than you think

  • Changing jobs or retiring
  • Rollover to a Traditional IRA without penalties and keep your retirement tax deferred
  • Guaranteed fixed rates
  • Local people to talk to


We are happy to help answer any questions you may have, please do not hesitate to contact an FCN Account Representative today, or call 1-800-575-3262.