retirement

Roth IRAs offer you a very easy way to plan for the future of you and your family. Your contributions are not tax-deductible but the earnings within a Roth IRA are tax-free as long as your funds have been in the account for at least 5 years and you are either over 59½ years of age, disabled, or buying your first home.

Roth IRA Features:

• The money you contribute to a Roth IRA has already been taxed. So the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines.
• Roth IRAs enable the money you contribute to grow tax-deferred. If you do not withdraw any of the earnings until you have had the IRA for at least 5 years and have a qualifying event, those earnings become tax-free.
• There is no 70½ year age limit on making contributions. You do, however, need earned income, which is defined the same as for Traditional IRAs. As long as you satisfy the Roth IRA requirements, you may contribute to a Roth IRA, even after the year in which you reach 70½ years.

Bridgeway Credit Union offers a Roth IRA that pays competitive market rates. A minimum amount of $500.00 is required to set up a Roth IRA savings account.

Are you ready to start planning for your child’s future? There is no time like the present! And the perfect way to start is with a Coverdell Education Savings Account (ESA) from Bridgeway Federal Credit Union.

The ESA allows after-tax contributions of $2K per year for each child until they reach 18 years of age. Contributions and earnings are tax free when withdrawn to pay for qualified education expenses which include tuition, fees, books, supplies and equipment.

Coverdell Education Savings Account Features:

• Contributions are not tax-deductible, but the contributions may earn interest tax deferred until distributed
• The child will not owe tax on any withdrawal from the account if withdrawal is equal to or less than the child’s qualified education expenses at an eligible educational institution for the year
• Amounts withdrawn from an ESA that exceed the child’s qualified education expenses in a taxable year may be subject to income tax and to an additional penalty of 10%
• If the child doesn’t need the money for pre- or postsecondary education, the child may roll or transfer the balance to an eligible family member’s ESA or to a qualified tuition program (QTP)

Bridgeway Credit Union offers a Coverdell Education Savings Account that pays competitive market rates. A minimum amount of $500.00 is required to set up an ESA.

* The Credit Union provides no legal advice to members, and provides the foregoing information from a reliable resource to give our members a basic understanding of these services. You should consult with your tax or legal advisor regarding any particular and the current status of applicable federal and state laws.