Many people have individual retirement accounts (IRAs) through credit unions to help with planning for the future. IRAs offer many benefits, including a reduction of taxes when contributions are made at the right time. If you’re thinking about making a contribution sometime in the future, the best time might be right now.

Why Should I Contribute to My IRA Before April 15^th?

1. You’ll Have a Lower Adjusted Gross Income (AGI)

Your AGI determines your tax rate and it also plays a role in your itemized tax deductions, which reduce your total tax burden. Reducing your AGI via an IRA contribution might allow you to capitalize on itemized deductions, which will save you money on taxes. 

2. You Can Deduct Your Annual IRA Contribution

Yearly IRA contributions can also be deducted from your tax bill. People aged 50 or older can contribute up to $7,000, while people under the age of 50 can contribute up to $6,000 and be eligible for a deduction.

Estacado FCU allows members to add their annual contribution to existing IRA certificates up to their federal limit. In many cases, a timely contribution can help you save thousands of dollars on your tax filing. 

3. Earnings on Investments Are Tax-Deferred

The sooner you build up your retirement nest egg, the more secure you will be. Contributing to a tax-deferred account like an IRA will prevent investment earnings from being taxed. That allows more of your earnings to go towards your retirement so you can rest assured. Keep in mind that tax-deferred status is only applicable for money that’s in your account, not for any withdrawals you make. 

Estacado’s Traditional or Roth IRAs can be added to any time during the year up to the member's federal limit. Certificates start at only $1,000 and range from six to sixty months in term. Visit https://www.estacadofcu.com/share-rates.html for our current rates.

If you have questions about retirement planning, your local credit union is often a good source of information. In Hobbs, NM, Estacado Federal Credit Union is glad to provide reliable financial guidance to its members. They also offer a wide range of accounts to help you plan for their future. Their Share Accounts have a lot of great features with great rates. They also provide other essential financial services, including loans, insurance, and notarizations. Call (575) 393-1596 for more information on becoming a member of this credit union. You can also visit the website to get started.