IRAs, HSAs & ESAs
If you're saving for retirement, school, or potential medical expenses, Individual Retirement Accounts (IRAs), Health Savings Accounts (HSAs) and Educational Savings Accounts (ESAs) provide tax advantages that get you more for your money. The exact nature of those advantages varies across accounts and individuals, so be sure to speak to a SAC FCU representative if you have any questions.
Traditional and Roth IRAs
IRAs give you tax advantages for retirement savings. Depending on the type of IRA you choose, contributions may be tax deductible and will grow either tax-deferred or tax-free. SAC FCU offers both traditional and Roth IRAs.
There are many differences between Roth and traditional IRAs, but the biggest is when you pay taxes on your income. With a traditional IRA, your contributions are tax deductible, but your withdrawals after retirement are taxed as income. With a Roth IRA, your contributions are not tax deductible, but you don't have to pay taxes on withdrawals. In general, Roth IRAs also have fewer restrictions and are more flexible with early withdrawals.
Choosing between traditional and Roth IRAs can be difficult, so don't hesitate to call us or stop by your local branch. We can help find the best investment for your goals.
ESAs and HSAs
Educational Savings Accounts encourage saving for primary, secondary, and higher education. Although there is no tax deduction for contributions, all earnings are tax-free.
Health Savings Accounts help members under 65 in high-deductible health insurance plans save for medical expenses. Deposits are tax free and you can use money from your HSA to pay for qualified medical expenses at any time, with no tax penalty.