Reliant FCU offers three ways to save for retirement, college expenses
Reliant’s Traditional IRA harnesses the power of compound interest and tax-free growth to help your retirement savings grow faster. Although you pay taxes on your withdrawals at retirement, you‘ll enjoy the advantages during your peak earning years, when your tax rates are likely to be higher.
Do you think that taxes will go down or up in the future? If you would like to pay your taxes now, and have some tax-free retirement income later, a Roth IRA is an excellent choice. Your tax or investment advisor can help you determine which IRA—or a combination of both—is best for your situation and goals.
Coverdell (Education) IRA
Although it’s not technically an IRA, the Coverdell or Education IRA shares many of the same characteristics of a traditional IRA—only for college instead of retirement savings. Put aside tax-deductible savings, and they grow tax-free! Withdraw funds later for approved educational expenses. The funds must be used before the beneficiary turns 30.