With all of life’s unexpected expenses, saving for retirement might not have always been at the forefront – at a younger age, there was more time to make riskier investments. As you reach your 40s, 50s, and beyond, you may begin to feel pressure in the realization that retirement is around the corner. An IRA Money Market account is a risk-free savings option and the perfect solution to boost your savings as you near retirement age.
What is an IRA Money Market Account?
This savings account is a high-interest, tax-advantaged account designed to help your retirement savings grow safely. It’s a secure alternative to an investment account that fluctuates with the market and potential earning instability.
When opening an IRA Money Market account, there are two different plan options: Traditional or Roth IRA. The main difference between the two is how and when you see your tax advantage. With a Traditional IRA Money Market account, tax deductions are up front so the taxes you pay are delayed until disbursements begin. For a Roth IRA Money Market account, funds are taxed before being deposited into the account and any disbursements made at the full retirement age are not taxed. Learn more in our IRA Service Center.
How is an IRA Money Market Account Different?
Different from a standard IRA savings account, our IRA Money Market account is a tiered-rate savings option – as your account balance grows, you’ll earn a higher interest rate, so you’ll earn more on your money. You can continue to add to your savings up to the contribution limits of your chosen plan. You can see this year’s contribution limits here.
Features of an IRA Money Market from General Electric Credit Union (GECU):
- Safe and secure. Since the rate doesn’t fluctuate, like in the investment market, you don’t have to worry about losing protected principle; your account balance can only grow.
- Tiered dividends. There are three rate tiers based on your account balance. The larger your balance, the more you’ll earn. Begin earning dividends with as little as $100.
- No minimum balance to open and no monthly maintenance fees.
- Funds are accessible, if the need arises. While you can withdraw your funds, there may be penalties for withdrawing funds before reaching full-retirement age. The timing in which you can begin taking distributions is dependent on the plan you choose. Consult with your tax advisor to discuss the specifics of your plan.
As you save with the goal of retiring comfortably, the fear of having enough can begin to intensify. Settle your anxiety by investing in a secure, safe, and growth-guaranteed IRA Money Market account. To open an IRA Money Market account, visit a local GECU branch.
Did you know, YOU can be a member of GECU? If you live or work in Greater Cincinnati, Northern Kentucky, or Southeast Indiana, you can easily become a member and experience better banking. Find out more about membership or contact us today!