Invest in tax-advantaged savings accounts to help you plan for retirement.
Individual Retirement Accounts (IRA’s) are specifically designed to give you an advantage on your retirement savings through unique tax incentives, including compounded interest that continually grows tax deferred. These tax advantages should make investing in an IRA the foundation of your retirement portfolio.
IRAs can be opened through our Contact Center at 617-495-4460 or in any one of our branches. For more information or personal assistance, please contact us.
How It Works:
- No minimum to open
- After age 59 1/2, both earnings and contributions can be withdrawn penalty free
- Any earnings grow tax deferred until withdrawn after age 59 1/2
- Earnings withdrawn after age 59 1/2 are taxed at your current tax rate
- Contributions may be tax deductible
How It Works:
- No minimum to open
- Contributions, not earnings, can be withdrawn tax and penalty free at any time
- After age 59 1/2, if the account has been open at least 5 years, earnings can be withdrawn tax free
- Contributions are not tax deductible
How It Works:
- $1,000 minimum to open
- Similar structure to regular Term Share Certificates (also known as CDs)
- Available at terms from 6 to 60 months
Penalties for early withdrawal will be imposed, which will reduce earnings.
NOTE: You may also be able to rollover your current retirement savings to an Harvard FCU IRA. Speak with an Harvard FCU representative for more information.
Make the Most of Your IRAs
Each year you may be eligible to make deposits based on your earned income. For IRA purposes only, earned income consists of wages (reported on a W-2), self-employment income from a business or farm, and alimony. You also must be under age 70.5 years old to contribute to a Traditional IRA. (Roth IRAs, by contrast, have no age restrictions.) The limits you may contribute to a Traditional or Roth IRA annually are as follows:
- If you are under 50 years old the maximum contribution up to $5,500
- If you are 50 years old or older the maximum contribution up to $6,500
Didn’t contribute as much as you should have this past year? Don’t worry! Contributions for any given year can be made up until the April 15 tax filing deadline in the following year. You may be eligible to contribute to both a Traditional and Roth IRA; however, your combined contribution to both accounts cannot exceed the above stated limits.
Harvard FCU makes it securing your future simple. Spread your IRA contributions over the year with automatic weekly, bi-weekly, or monthly deposits. It’s easy — call us at (617) 495-4460, email us, or come in to any one of our branches. Our knowledgeable representatives can help you get started.
We recommend that you consult a tax expert regarding your eligibility for either a Traditional or Roth IRA account.