Retirement
Savings

TFCU offers Traditional IRA, Roth IRA, and Simplified Employee Pension plans.  Invest safely with a TFCU retirement savings account or certificate of deposit.1

 

Traditional
IRA

Best for: If you'd like to defer taxes on your money until you take it out at age 59 ½ or older. Contributions to Traditional IRA may be tax-deductible.2

Contributions may be made by anyone until the year they turn 70 ½, who has taxable income from compensation (or who is filing jointly with a spouse who earns compensation).

Contributions may be tax deductible (based on income limits).

Earnings grow tax deferred until withdrawn.

Contribution limits are subject to change annually.

ROTH
IRA

Best for: If you'd like to pay taxes now on your contributions instead of when you’re 59 ½ or older. If you believe you will be in a higher tax bracket after 59 1/2, this may be the solution for you.2

Contributions may be made by anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation).

Withdrawals are not required at age 70 ½.

Earnings may not be subject to penalty if the account is open for five years and withdrawn for qualified reason.

Contributions are not tax deductible.

Contribution limits are subject to change annually.

SEP
Plan

Best for: Employers (including self-employed individuals) that would like to set up a retirement account. A Simplified Employee Pension plan, is a type of retirement account that an employer may establish, including self-employed individuals, to contribute to their employee’s retirement.

 Contributions may be made by the employer, at their discretion.

 IRA owner is the employee and controls the investment decisions of the IRA.

 Contributions are made by the employer, not employee

 Contribution limits are higher than a traditional IRA

Tongass Federal Credit Union offers two investment choices for Roth IRAs and SEPs:
Share Savings Accounts (Minimum deposit $25)
Certificates of Deposit with terms from 12 months to 60 months. (Minimum deposit $500)

1 IRA deposits are federally insured separately from other accounts up to $250,000.

2 For specific tax advice, please consult your tax advisor.

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