Individual Retirement (IRA)

Individual Retirement. Sierra Central Credit Union. An Equal Opportunity Lender. Federally Insured by the NCUA.
No matter what stage you’re at in life, saving now with an IRA can better prepare you financially for your future.
Whether you are just beginning your career or business, planning for your family, or approaching retirement, it’s never too late to start saving.

Traditional IRA

Traditional IRASave money now by saving money for later?

  • If eligible, saving money for your future by making a Traditional IRA contribution may save you money on your taxes now.
  • Unless you (or your spouse) actively participate in an employer-sponsored retirement plan, contributions to a Traditional IRA are fully deductible.
  • If you (or your spouse) are an active participant, you still may be able to deduct all or part of the contribution, depending on your modified adjusted gross income.

Even if you can’t deduct any of it, you can still make the Traditional IRA contribution and set aside tax-deferred money for later.*

Roth IRA

Roth IRAThe potential for tax-free income during retirement is just one of the many reasons to open a Roth IRA.

  • If you’re eligible to make Roth IRA contributions, then withdraw from your Roth IRA as much as the total amount you’ve contributed-without paying taxes.
  • Because the money you put into a Roth IRA are not deductible, when you take it our later, it is not subject to income tax – or IRS penalty tax.
  • If certain conditions are met, you can take out the earnings in your Roth IRA tax free.

Before contributing, converting, or rolling over to a Roth IRA, consider talking with a competent tax advisor to help you make a decision that best meets your goals.*

Educational Savings Accounts (ESA) or Coverdell

ESA or CoverdellAn ESA is a great way to set aside money for a child’s education – tax deferred.

  • Use an ESA to make annual non-deductible contributions on behalf of a child until the child reaches age 18*.
  • The earnings generated will remain tax deferred while in the ESA.
  • When the child uses money in the ESA to pay for qualified education expenses, the contributions and the earnings come out tax free.
  • Qualified education expenses include tuition and fees, books, supplies and equipment, room and board, and special needs services.

Simplified Employee Pension – SEP

Simplified Employee PensionThinking of establishing a retirement plan for your business but overwhelmed by the complexity of most retirement plans?
Consider a simplified employee pension (SEP) plan.

  • SEP plans are available to most types of businesses, including sole proprietorships, partnerships, corporations, tax-exempt entities, and state and local governments.
  • SEP plans generally are less expensive and easier to maintain than other retirement plans, which makes SEP plans an excellent choice for small businesses.

A SEP IRA is set up by the business owner and contributions are made by the business owner for themselves or their employees.

  • Each SEP IRA account owner pays tax on the contributions (and earnings) only when withdrawn from his or her account.
  • Contributions you make to your SEP IRA account as a business owner, as well as the contributions made to each eligible employee’s SEP IRA account, are generally 100% tax deductible by the business.
  • In addition, as the business owner, you may be eligible for a tax credit each year for the first three years.

Retirement Calculators

Retirement Calculators

For more information on any of our IRA choices, please contact one of our representatives.

*Always consult with a qualified tax adviser regarding eligibility, contribution amounts, and other tax rules and regulations regarding retirement accounts.

The age 18 and age 30 limits do not apply to special needs individuals.