G.A.P. Federal Credit Union offers a number of ways to save for your retirement. Some have tax-free earnings and tax-free withdrawals, others allow you to defer taxation until you withdraw. And any of these accounts can be set up as a 12, 24 or 36 month certificates of deposit.

Traditional IRA -Traditional IRAs are specially intended for retirement after age 70½. The biggest advantages are that certain contributions to this type of IRA are tax deductible in the year the contributions are made, and taxes due on the earned interest are deferred until the funds are withdrawn.

Roth IRA – Roth IRA contributions are not tax deductible. On the other hand, while traditional IRA dividends are tax deferred, Roth IRA withdrawals are tax free IF the account holder has had a Roth IRA for more than five years; and is age 59½ years or older; or the holder has become permanently disabled; or is purchasing a first home; or dies. Contributions can be made after age 70½, and no withdrawals are required during the account holder’s life.