There’s no better time than today! You have until April 18, 2017, to open or add to an IRA and still receive credit for the 2016 tax year.
You may be asking yourself, what is an IRA and why should I have one?
There are two basic types of IRAs: Traditional and Roth.
Contributions to a traditional IRA are fully tax deductible if you are not an active participant in a pension or profit sharing plan where you work. If you do take part in a retirement plan at work, you can still contribute to a traditional IRA; however, your adjusted gross could limit the amount you can deduct. Find out more about our traditional IRA here.
What if you want income tax free distributions? A Roth IRA might be more in line with your interests. The money you contribute to a Roth IRA does not qualify for a tax deduction, but when you take money out later it’s not subject to income tax. If certain conditions are met, you can also take out the earnings in your Roth IRA tax-free. The contribution limits and deadlines are the same as a traditional IRA, but they are subject to income qualifications. Find out more about our Roth IRA here.
So hopefully now you’re ready to open an IRA! Why choose Catholic Life Insurance?
We started offering IRAs back in 1975 as a way to help our members save enough money for their retirement, which we believe is so important. Since then, we have consistently paid our members favorable returns with guaranteed minimum rates of return. Best of all, no one has ever lost any principal! This is especially important in today’s uncertain times, where the stock market continues to rise and fall, and interest rates remain very low.
There are several advantages of a Catholic Life annuity, including:
- Safety of principal
- Competitive long-term interest rates (Our current rate is 3.25% annual yield, which includes first-year additional interest of 1.25%)
- Minimum interest rate is guaranteed never to fall below 1.5%
- Tax deferral on earnings until actually withdrawn (special IRS rules apply to IRAs and Roth IRAs)
- Quarterly statements
- Nursing home and critical illness withdrawal privileges
- No cost Accidental Death Annuity fraternal benefit- Learn more about that here.
- No sales charges or fees
- 10% annual withdrawal privilege
- No annuitization required
- Early withdrawal charges waived upon death
- May avoid probate
As always, we’ve got highly knowledgeable sales professionals standing by to answer any questions you may have about our IRAs!