Retirement & Education Savings | FCCU | Fort Atkinson, Jefferson, Whitewater, Watertown

Checking & Savings / Savings / Retirement & Education Savings

Retirement Savings

Invest in a happy, healthy retirement

	Traditional IRA	Roth IRA	Simplified Employee Pension (SEP)
Best if you...	Want to reduce taxable income now Don’t plan on making withdrawals until retirement	Want to have more flexibility for withdrawals and reduce taxable income Plan to work past age 70	Are self-employed or a small business owner
Tax Advantages	You may be able to reduce your current income taxes now You don’t pay taxes until you take money out, typically when you are in a lower tax bracket	All earnings grow tax-free, and you don’t pay taxes when you take money out	You don’t pay taxes until you take money out of the account
Contribution Limits	See IRS Website	See IRS Website	See IRS Website

Save for qualified education expenses for higher education, plus elementary and secondary education!

Tax Advantages	You don’t pay taxes until you take money out of the account Tax-free distributions are allowed if used for qualified education expenses
Contribution Limits	Limit of $2,000 per year, per student total from all contributors Beneficiary must be under 18 when contributions are made Income limits may apply
Withdrawals and Distributions	Tax-free distributions are allowed if used for qualified education expenses Income tax and a 10% early withdrawal penalty may apply if used for non-qualified expenses May withdraw at any time Funds must be distributed or transferred to another family member by the time the beneficiary reaches age 30

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For those without a retirement plan at work or those looking to maximize their retirement savings, an IRA provides an individualized saving option.

Learn More 7 MIN READ

Understanding and effectively utilizing your tax-advantaged retirement savings options can have a big impact on your current and future finances.

Learn More 3 MIN READ

Qualified tuition plans, commonly known as 529 plans, are a tax-advantaged way to save for post-secondary education.

Learn More 5 MIN READ

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