Individual Retirement Account (IRA)
Set a course for financial security in your retirement with one of CAHPCU's Individual Retirement Accounts (IRA). You can choose a fixed- or variable-rate IRA. And, in most cases, while your retirement nest-egg is growing your dividends will be tax-deferred.
With a traditional IRA, you may accumulate earnings tax deferred and avoid income tax until the money is withdrawn. And if you qualify, even the contributions may be tax deductible! Consult with a tax advisor for specific information about your circumstances.
Contributions for the 2010 tax year must be made by 4/15/2011. You can contribute up to $5,000 a year of your earned income to an IRA – choose the amount that’s right for your budget and goals. If you’re a little behind on your retirement goals and age 50 or older, you may make “catch-up” contributions to meet your goals -- you may contribute an additional $1,000. You can start receiving distributions as young as age 59½ or wait until age 70½. And, at CAHPCU your IRA is privately insured up to $500,000 per account -- so you know your investment is safe.
An IRA gives you a chance to keep more money for yourself and pay less to Uncle Sam:
- Minimum balance as low as $5.00
- Dividends are compounded and paid quarterly
- IRAs and other Retirement Funds are privately insured up to $500,000.00 by ASI
- Early withdrawal penalties may apply
CAHPCU offers a variety of IRA options:
Rates:
IRA Share Account
|
Minimum
Balance
|
|
APY1 |
| $5.00 |
|
0.50%
|
Variable-rate; dividends paid quarterly
IRA Certificates: (learn more about fixed- vs. variable-rate)
Fixed-Rate IRA Certificates
| Term (Days) |
Minimum to Open |
Minimum to Earn Dividends |
|
APY1 |
Level |
| 364 |
$2,000 |
$2,000 |
|
1.30% |
2K |
| 546 |
$2,000 |
$2,000 |
|
1.45% |
2K |
| 728 |
$2,000 |
$2,000 |
|
1.65% |
2K |
Variable-Rate IRA Certificate
| Term (Days) |
Minimum to Open |
Minimum to Earn Dividends |
|
APY1 |
Level |
|
728
|
$2,000
|
$2,000
|
|
1.57%
|
2K
|
Fixed vs. Variable
Fixed-rate products offer a guaranteed rate of interest over a specified time, or term of the product. Because of their fixed rates, these products may offer stability around market or interest rate fluctuations. You are guaranteed how much future income you can expect from your investment, versus a variable-rate product that is tied to a market or interest rate and subject to the same risks.
Variable-rate products generate variable rates of return because they are tied to fluctuating economic indexes. Keep in mind that your rate of return is not guaranteed, so the risk of a variable-rate may be higher. As with other investment alternatives, the higher the risk involved in your portfolio, the higher the potential return will be on the investment.
The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax adviser.
1 Annual Percentage Rate (APY)
Rates Effective 9/1/2010. Rates and terms subject to change without notice.
This site contains links to other web sites, in order to assist users in locating and accessing information that may be of interest. C.A.H.P. Credit Union does not warrant linked sites for any purpose. Further, the inclusion of a link to another site does not constitute an endorsement by CAHPCU of the site, its owner(s) or any products or services advertised on the linked site.