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Individual Retirement Accounts (IRAs)

Planning for your retirement need not be a daunting task when you have assistance from professionals. Our financial advisors can help you whether you are 20 years from retirement, already retired, or anywhere in between.

An IRA, or Individual Retirement Account, is a contract or custodial account established to hold assets for an individual's retirement. An IRA is not a certificate of deposit, mutual funds, money market or any other type of investment. An IRA can be looked at as a “bucket” into which people can put different types of investment vehicles. You can put regular certificates in them, or, you can put mutual funds, stocks, bonds, and annuities into your IRA. What to put into an IRA depends on your individual circumstances. There are different types of IRA's. Which to choose also depends on your circumstances and goals. Our financial advisors can help you decide the best course of action.

Traditional IRA
A Traditional IRA is a savings account geared to help individuals accumulate funds for possible tax deferral on the amount invested. Some individuals will receive a non-refundable tax credit for contributions (contingent on income). Your earnings grow tax deferred and most distributions are taxable.

Roth IRA
Roth IRA's were created to encourage people to deposit funds which were already taxed in these special accounts. The benefit of a Roth IRA is that earnings grow tax deferred and distributions are tax free.

Coverdell Education Savings Account
Formerly known as the Education IRA, this savings plan was created to help save for children's college education. All contributions are non-deductible. Earnings grow tax deferred and distributions for qualified educational expenses are tax-free.

*Investments offered through CUSO Financial Services, L.P. (CFS) an independent broker/dealer, are not NCUA/NCUSIF insured, not credit union guaranteed and may lose value. Registered representatives are employees of Water and Power Community Credit Union and registered through CFS ( member FINRA/SIPC).