It is never too early to start planning for your retirement!

The Taxpayer Relief Act of 1997 ushered in a host of changes that make IRAs more attractive and flexible for a wider variety of investors. For starters, traditional IRAs now allow more people to enjoy a tax deduction for their IRA contributions. In addition, the Act created two new IRA options-the Roth IRA and the Education IRA - both of which feature tax-free withdrawals.

IRAs at Liberty Bay Credit Union have no annual fees and contributions and all earnings are insured in full!

A Look at Three IRAs:

  • Traditional IRAs
    A traditional IRA is a type of retirement plan that has been in existence since 1975. Traditional IRAs offer tax-deferred earnings and the possibility for tax-deductible contributions. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term savings plan.
  • Roth IRAs
    A Roth IRA is an individual retirement account created by the Taxpayer Relief Act of 1997. Named for former Senate Finance Committee Chairman William Roth, Jr., this IRA offers more incentives to boost your retirement savings. Unlike traditional IRAs, contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free.
  • Coverdell Education Savings Account (ESA)
    The Taxpayer Relief Act of 1997 created the Education IRA, now known as the Coverdell ESA. Its sole purpose is to help you pay for your child's education expenses, such as tuition, fees, books, supplies, equipment, and in some cases, room and board and computers. Coverdell ESAs offer tax-free distributions and, unlike section 529 plans, can be used for elementary and high school expenses at most public, private, and parochial schools.

Need more information?
One of our investment specialists would be happy to answer any of your questions. You can send us an e-mail, complete our feedback form, or give us a call at (617) 439-6500.