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Financial Health, Products & Services

OlyFed IRA’s: A Great Option for Retirees or Those Approaching Retirement

If you are nearing retirement or already retired, trying to figure out what to do with your investments and savings may be intimidating and confusing. This is especially true with today’s volatile economy and uncertain markets.

At this stage in life, you want to protect what you worked so hard to save and you want to make sure your money is there for your needs in the future. More importantly, you want to ensure you have money set aside if an unexpected expense or financial emergency arises.

Man and woman in conversation about IRAs at tax timeWhen we talk about savings and investing, we often hear about the importance of diversification and not putting all your eggs in one basket. This is where an IRA Certificate of Deposit (CD) with OlyFed can come in handy because your savings are FDIC insured, you’re guaranteed to earn a rate of return on your CD and you don’t have to worry about any annual or administrative fees. By placing some of your retirement savings into an OlyFed IRA, you broaden your portfolio, while safeguarding your hard-earned money.

In short, with an OlyFed IRA your retirement savings are protected from the unpredictable stock market and you know your dollars are there when you need them. It is especially reassuring to know there are many cases when you can withdraw funds from an IRA prior to retirement without penalty; however, you should consult a tax and/or legal advisor prior to making such a decision.

The great thing about an OlyFed IRA is you can contribute to it monthly and withdraw from it anytime without an early withdrawal penalty if you’ve reached the required minimum distribution age.

Woman in kitchen readingWhen it comes to IRAs, OlyFed offers both Roth and Traditional accounts depending on what works best for your unique tax situation. With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½.

It’s important to note that contributions to a Roth IRA are based on your income level. Prior to making contributions to a Roth IRA, you should check with your tax advisor to see if you qualify.
The maximum total annual contribution for all your IRAs combined is $6,000 if you’re under age 50 and $7,000 if you’re age 50 or older.  The deadline to contribute to your IRA is typically April 15 of the following tax year, so you may still have time to fund your IRA and possibly save on your taxes. Again, we recommend you consult your tax and/or legal advisor to determine what’s going to work best for your circumstances. We also suggest you visit the IRS website for further details.

To learn more, please contact one of our knowledgeable and caring bankers through a secure message or by calling (360) 754-3400.

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Article Disclosure: Please consult your tax and/or legal advisor for more details. All OlyFed IRAs have a fixed rate for term. Fees may reduce account earnings.  Early withdrawal penalties may apply. Terms and conditions apply. See Truth in Savings and Terms & Conditions disclosures for details.