Individual Retirement Accounts (IRAs)  ——  Your investments grow tax-deferred until retirement

A traditional IRA, or Individual Retirement Account, with the American Fraternal Union is a tax-deferred personal retirement fund. You can contribute up to $4,000 a year at present ($4,500 if you're age 50 or older), and depending on how much you earn and your marital status, the money you invest may be tax-deductible (deductible IRA) or not (non-deductible IRA).

A key advantage of an IRA is that your investments grow tax-deferred until you take the money out at retirement.

An ideal candidate for an IRA is someone who doesn't have a company retirement plan or whose earnings fall below the IRA ceiling.  If your earnings are too high, you can still invest in an IRA, although you can't deduct your contribution.  See the Deductible Chart below.

Husbands and wives may each have an IRA, even if one person in the marriage is not working.  One person's annual contribution, whether made to just one or to multiple IRAs, is limited to the normal yearly contribution amount allowed by the IRS.

The Tax Relief Act of 2001 makes provisions for the so-called "catch-up" contributions to your IRA.  This act will benefit many individuals, especially those who haven't saved enough for retirement.  These "catch-up" contributions will allow people aged 50 and over an increased annual contribution limit.  People closer to retirement age can accumulate IRA savings at a faster rate than others.

Contact us for more information on our competitive IRA accounts and secure your financial future today!