An IRA is an investment account that belongs to you, to which you contribute. It can consist of stocks, mutual funds, bonds, annuities, certificates or other investment products. Gains grow tax deferred until they’re distributed. Meet the eligibility requirements and you can deduct contributions to a traditional IRA from your federal taxable income, as well as from your taxable income in most states. This up-front tax break reduces the current income taxes you owe.
Also, money in a traditional IRA accumulates tax deferred. You’ll eventually have to pay taxes, but not until you make a withdrawal. A Financial Advisor located at Sun East Federal Credit Union will show you how to get started on your IRA.