Every year, we make tons of resolutions. We sign up for a gym membership and vow to get healthy, we swear to ourselves we’ll start going to bed on time, and we make promises to become healthier, happier people.  But this year, the best resolutions you can make are the ones that affect your finances. Help nurse your credit score back to health, make your checking account happier, or invest in your future and start down the path of a healthier, happy financial year.

You may not even know what an IRA (individual retirement account) is. That’s okay. We are here to help the confusing become understandable!

An individual retirement arrangement (IRA) is a personal retirement savings plan that offers specific tax benefits. In fact, IRAs are one of the most powerful retirement savings tools available to you. Even if you're contributing to a 401(k) or other plan at work, you should also consider investing in an IRA.

When it comes to retirement savings, you have options to consider. Here is a list of some of those options and information that can help you make the best decision. It’s USC Credit Union’s goal to be your financial partner for life and to empower you to own your future. Let’s get started!

Traditional IRA
An IRA is an Individual Retirement Account. Deposits to a traditional IRA are not taxed and your contributions will grow “tax-deferred,” meaning you will pay taxes on the money when you withdraw it.
• Income limits: Anyone with earned income (younger than 70½) can contribute.

• Tax-deductible? Yes, on both state and federal returns for the year you make the contributions.

• Withdrawals: Qualified distributions can begin at 59½, but the first distribution cannot occur until
five years after the first contribution. Also, contrbutions (but not earnings) can be withdrawn penalty- and tax-free anytime.

• Required Minimum Distributions (RMDs): Begin at age 70½