Planning for the Future: Retirement Savings Options with JetStream FCU

When you plan for retirement, choosing the right savings vehicle can secure your financial future. JetStream Federal Credit Union offers tailored IRA solutions that empower you to grow your nest egg with confidence. Let’s explore how these accounts work, their unique benefits, and how they align with your long-term goals.

Understand Your Individual Retirement Accounts -IRA- Choices

We provide two primary retirement savings tools: Traditional IRAs and Roth IRAs. Each account delivers distinct tax advantages, so selecting the right option depends on your income, tax strategy, and retirement timeline.

Traditional IRA: Tax-Deferred Growth

A Traditional IRA lets you save for retirement with contributions that may qualify for tax deductions based on your income*. Your earnings grow tax-deferred, meaning you only pay taxes when you withdraw funds during retirement. For 2023, you can contribute up to $6,500 annually or $7,500 if you’re 50 or older. Once you turn 59½, you can make penalty-free withdrawals, and at age 72, you must start taking required minimum distributions (RMDs) annually.

This account suits individuals who expect to face a lower tax bracket in retirement. Consult a tax professional to confirm eligibility for deductions, as tax laws frequently evolve.

Roth IRA: Tax-Free Withdrawals

With a Roth IRA, you contribute after-tax dollars, but your investment gains grow tax-free. Unlike a Traditional IRA, you can withdraw funds in retirement without paying income taxes on the earnings. Roth IRAs also eliminate RMDs, allowing you to preserve your savings indefinitely if desired. You can contribute at any age, provided you have eligible earned income**.

This option benefits those who anticipate higher tax rates later in life. Note that income limits apply for Roth IRA eligibility, so verify your status with a tax advisor.

Contribution Limits and Flexibility

Both IRAs share the same annual contribution limits ($6,500 or $7,500 for those 50+ in 2023), but their tax treatments differ significantly. The Traditional IRA prioritizes immediate tax relief, while the Roth IRA focuses on long-term tax-free growth. Use our IRA Savings Account to start with just a $1.00 deposit and earn a 0.25% Annual Percentage Yield (APY).

Maximize Your Retirement Strategy with JetStream FCU

Building a robust retirement plan requires more than just opening an IRA. We support your goals with federally insured accounts, penalty avoidance guidance, and complementary financial services.

Avoid Early Withdrawal Penalties

The IRS imposes a 10% penalty on IRA withdrawals before age 59½, but exceptions exist for hardships like medical expenses or first-time home purchases. We encourage members to preserve their retirement savings by understanding these rules. Always consult a tax advisor before accessing funds early, as penalties can erode your progress.

Need clarity? Contact JetStream FCU to discuss withdrawal options and IRS-compliant strategies.

Leverage Complementary Financial Services

Pair your IRA with other of our products to strengthen your financial foundation:

• Savings Accounts: Grow your emergency fund with high-yield options while your IRA focuses on retirement.
• Checking Accounts: Manage daily expenses seamlessly with online and mobile banking tools.
• Mortgage Loans: Invest in your future home with competitive rates and flexible terms.

Explore these services to create a holistic plan that balances short-term needs and long-term security.

Start Building Your Retirement Today

We make retirement planning straightforward and secure. Whether you prioritize the upfront tax benefits of a Traditional IRA or the lifelong tax freedom of a Roth IRA, your savings will grow under the protection of NCUA insurance.

Visit the Individual Retirement Accounts – IRA –  link to open an account with a $1.00 deposit and review the contribution guidelines. To personalized assistance, schedule a consultation with a team member to discuss how IRAs integrate with services like mortgages or savings accounts.

Remember: Tax laws and contribution limits change regularly. Always consult a qualified tax professional to optimize your strategy. With JetStream FCU, you gain a partner dedicated to helping you retire with confidence.

*Tax laws are subject to change. Contact a tax professional for more details. We are unable to provide financial advice but can answer questions on specific IRA products.

**Certain restrictions apply. Not all taxpayers are eligible. Consult your tax advisor for details.