For Nest Eggs Or College Funds, PrimeWay Has The Answer

Ask people what expenses cause the most worry and two popular answers are funding retirement and paying for college. It’s no wonder, with the cost of living and higher education expenses going up every year.

So how do you pay for them? With a diligent and disciplined approach using PrimeWay Federal Credit Union’s multiple Individual Retirement Account (IRA) options. The Individual Retirement Account is the repository for all of the different investments that will help fund your long-term financial goals. The IRA is not an investment itself, a common point of confusion.

IRA Tax Advantages

Different IRA options offer different tax advantages, and they’re all valuable additions to a person’s investment portfolio. Most PrimeWay Federal Credit Union IRAs require a $500 minimum deposit to open, and we’re offering a new option that requires only $25 to open. All of them feature no monthly service charge.

Your savings federally insured to at least $250,000 by the National Credit Union Administration (NCUA), a U.S. Government Agency, and backed by the full faith and credit of the United States Government.

Here’s an individualized look at PrimeWay Federal Credit Union’s IRAs:

Traditional IRA Certificate

This popular IRA is funded with pre-tax deductions from your paycheck, which decreases your tax liability:

  • Minimum balance of $500
  • No monthly service charge
  • Dividend-bearing**
  • Offers up-front tax deduction
  • Earnings are tax-deferred until withdrawn at retirement

Roth IRA Certificate

Funded with after-tax money, the Roth features more opportunities for tax-free and penalty-free distributions for more tax savings and increased income at retirement:

  • Minimum balance of $500
  • No monthly service charge
  • Dividend-bearing**
  • No age requirements for contributions, as long as the IRA owner or spouse has compensation for the year to which the contribution is attributed

Coverdell IRA Certificate

This IRA is created solely to pay for education expenses of a particular child.

  • Minimum balance of $500
  • No monthly service charge
  • Dividend-bearing**
  • Tax-free earnings if used for qualified education expenses by the time the child turns 30
  • Funds can be used for elementary and secondary school expenses

Tax Advantage Savings IRA

Now PrimeWay Federal Credit Union offers the opportunity to start an IRA at a lower deposit threshold so more people can enjoy the benefits of tax-free investing:

  • Minimum balance of $25
  • No monthly service charge
  • Dividends compounded and credited monthly**
  • Earnings are tax-deferred until withdrawn at retirement

Contact PrimeWay Federal Credit Union today to discuss which IRA best suits your long-term goals. You can get more information using PrimeWay Federal Credit Union calculators that determine how much money you need to retire securely, whether your current retirement plans are on track and what you'll need to save enough money for your children's college education.

Penalties apply for early withdrawal. A $10 fee is assessed if the account is closed entirely. **Dividends are calculated on an average daily balance. Dividends are compounded and paid quarterly on certificates and monthly on all other accounts. Refer to your Rate Schedule for the current interest rate. If you close your account before dividends are posted, you will not receive accrued dividends.

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