The new year is a fresh opportunity to take charge of your financial future. What is one of the best moves you can make in 2025? Starting an Individual Retirement Account (IRA). With tax advantages, flexibility, and the potential for long-term growth, an IRA is a smart way to build your retirement savings. Here’s why this could be the year to take action:

Enjoy Significant Tax Benefits

Depending on the type of IRA, you can maximize your tax savings while planning for the future:

  • Traditional IRA: Contributions may be tax-deductible, dividend earnings are tax-deferred, and tax credits may be available to certain individuals. Keep in mind that distributions are generally subject to federal income tax, and mandatory distributions begin at age 72.
  • Roth IRA: Contributions are not tax-deductible, but qualified distributions (including earnings) are tax-free after a five-year waiting period. No age limits for contributions or mandatory distribution requirements make it a flexible option.
  • Education IRA: Contributions set aside for a child’s education are made with after-tax dollars, while the earnings and distributions for qualified education expenses are tax-free.

Flexible Options for Every Stage of Life

IRAs offer flexibility to suit various needs:

  • Looking for additional savings beyond your 401(k)? An IRA provides more investment choices and tax advantages.
  • Self-employed or lacking a workplace retirement plan? An IRA ensures you still have a path to retirement savings.
  • Need to save for your spouse’s future? A spousal IRA is a perfect solution.
  • Want to fund your child’s education? Education IRAs are a great way to save for qualified expenses while benefiting from tax-free earnings.

Take Advantage of Compounding Interest

The earlier you start, the more time your money has to grow. For example, contributing $6,500 annually starting at age 30 could grow to over $1 million by retirement with consistent returns. Waiting just a few years could mean missing out on thousands in potential growth.

Ready to Get Started?

Don’t wait to build a brighter financial future. Our financial advisors are here to help you choose the right IRA and create a plan tailored to your needs. Contact us today to take the first step toward your retirement goals.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA / SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

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CFS representatives do not provide tax or legal guidance. For such guidance please consult with a qualified professional. Information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy. Past performance does not guarantee future results.