· Traditional IRA
-A great option for creating a balanced, long-term savings plans with tax deferred earnings and possible tax-deductible contributions.
· Roth IRA
– More flexibility in the use of your investment. Not tax deductible; however, qualified distributions are tax-free. Consult your tax advisor about maximizing this option.
· SEP (Simplified Employee Pension) IRA –
Retirement accounts which allow employers to make tax-deductible contributions on behalf of eligible employees. Employees do no pay tax on these contributions, but distributions are taxed-subject to many traditional IRA rules.
· Coverdell Education Savings Accounts –
Can be used to pay for qualified elementary and secondary education expenses (tuition, fees, books, other supplies, and in some cases, even room and board). Contributions are not tax-deductible; however, a Coverdell ESA offers the potential for tax free withdrawals if used to pay qualified education expenses. In order to get the maximum benefit, be sure to make regular contributions.
A Police FCU IRA is also a great place to reinvest your 401(k), Qualified Retirement Account, or a rollover1.
Please visit the IRS website for current transaction limits.
1. A rollover is when you move the assets in an employer-sponsored retirement plan, such as a 401(k) or 403(b), into an IRA.