IRA Contributions Deadline Extended to May 17, 2021!
The Internal Revenue Service recently announced that individuals have until May 17, 2021 to meet certain deadlines that would normally fall on April 15, such as making IRA contributions and filing certain claims for refund. So, it’s not too late to open an IRA and/or make a contribution to help manage your tax exposure.
When it comes to IRAs, you have a couple of options and opportunities, each coming with different tax benefits and intended uses. There are also contribution limits based on age and timing restrictions. To help you decide which type of IRA is right for you, and so you can make an informed decision that may help you reduce your tax burden this year, here is some insight into Traditional and Roth IRAs.
A Traditional IRA is a type of retirement account in which individuals can make pre-tax contributions and the investments in the account grow tax-deferred. In retirement, the owner pays income tax on withdrawals from a Traditional IRA. The maximum contribution amount is $6,000 per year for those up to 50 years of age; $7,000 for those over 50 and these contributions can be made up to the age 70 ½. At the age of 72, there is a required minimum distribution on Traditional IRAs, which is determined by an IRS formula.
The two big benefit of a Traditional IRA are:
Since Traditional IRAs provide an opportunity for tax-deferred earnings (earnings are taxed when withdrawn), they can be particularly helpful to those who anticipate being in a lower tax rate in retirement.
Traditional IRA contributions may be tax deductible, reducing tax burdens for contributors.
A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. Roth IRA rules dictate that as long as you have owned your account for 5 years and you’re age 59 ½ or older, you can withdraw your money when you want to and won’t owe any federal taxes. One thing to consider is that with Roth IRAs, you are contributing post-tax money, which impacts your current income. The maximum contribution amount is $6,000 per year for those up to 50 years of age; $7,000 for those over 50.
The benefits of a Roth IRA are:
Roth IRAs offer tax-free earnings and withdrawals.
Regular contributions can be withdrawn anytime, tax-free and penalty free.
Unlike the Traditional IRAs, there are no mandatory withdrawals at age 72.
Wheelhouse Credit Union offers both types of IRAs, each with the option to be opened as a Daily Savings Account, a Certificate or both. There is no monthly service charge for either type and they are federally insured by NCUA up to $250,000. We recommend checking with your professional tax advisor for direction and answers to questions specific to your personal financial situation.
Note: Although a normal/qualified distribution may not have an IRS penalty, if an IRA is set up as a Certificate and a distribution is taken during the Certificate term, then an early withdrawal penalty will apply.
Happy International Women’s Day: Top Tips for Women in Business
In honor of International Women’s Day, we’ve gathered the top tips from the women who serve on our leadership team. Together, they draw from their experiences to share their advice for fellow working women who strive to one day be in their own position of leadership. Here’s what they said:
Becky R.-A, VP, Human Resources
Becky said that although it may sound cheesy, this reminder has helped her to continually push past barriers and achieve success in her endeavors:
“Problems are simply opportunities to succeed, so don’t let a problem prevent you from rising to a challenge.”
Gay P., VP, Sales & Service
Gay reflected on her journey up the corporate ladder at shared her thoughts on becoming a strong female leader in the working world:
“Respect is something you earn; it doesn’t come with the title or position. Be honest, direct, humble and a good listener. It’s OK to say, ‘I don’t know.’”
Jill F., VP, Marketing
Jill said that in her career, she has found that holding these principles in the highest regard have been to her personal and professional benefit:
Take care of the people around you because it’s the right thing to do.
Be the person that you most admire.
Be an expert in your field, contribute to your team and share the success with others.
Lisa C., VP / CFO
Lisa shares that these attributes have helped her to become the leader she is today and believes they are key to being a positive and effective leader:
Be innovative; always think outside the box to reach for the impossible.
Be grateful to your team; appreciation them for their efforts and contributions.
Be humble and selfless; foster your team’s wellbeing and unlock the individual potential.
Be empathic and supportive; build an emotional connection with your team.
Be assertive; it is acceptable to show your position with a firm and objective conviction.
Be a fair leader; people don’t need to be managed, they need someone taking the initiative and leading by example.
Lisa P.-H, President & CEO
On her journey to becoming the President & CEO of Wheelhouse Credit Union, Lisa has learned a lot about what it takes to be a female leader in business. She said, “if I were to give young women a tip or some advice, I would say believe in yourself, be kind and persevere. I have always been a believer in working hard, surrounding yourself with good people and learning all that you can.”
Find a mentor(s) and help to mentor others.
Honesty, integrity and empathy should be your guiding principles. It will create a culture of trust.
Be humbly confident, but not afraid to show your strength.
Don’t lead so far in front that you forget the people you need most and that need you.
Walk alongside and get involved in your community.
To help you ground yourself in a purpose, find and support a cause you are passionate about.
Bring your passion to work to inspire passion in others.
Always be willing to fail upwards by taking ownership of your mistakes. There will be times things don’t work out as planned; make sure to find the wisdom in each lesson.
“At the end of the day, you should be able to reflect back and be proud of your work and interactions with others. I believe your work is your signature. It says a lot about who you are as a person…oh, and don’t forget to have fun and enjoy the moments, both big and small.”
All in all, our key takeaways for women who strive to be leaders in their field are be true to yourself, be honest, humble, and gracious, know your field, rise to the challenge, and don’t be afraid to fail.
To all our fellow women, Happy International Women’s Day.
Virtual events have been more popular due to the current Coronavirus pandemic because they can be easily attended from home. Amongst these virtual events are seminars/webinars. These kinds of virtual events are educational and may be worth your time. Here a few reasons why we like virtual seminars and why we think you should attend one:
1. Safe for You and The Environment
A virtual seminar allows you to attend from the safety of your home. You can join through your smartphone, laptop, or tablet – so you can walk, camp, or sit at home and listen in. Virtual webinars, unlike in-person seminars, mean no travel-related waste, such as CO2 emissions, plastic coffee cups or snack wrappers; plus, no paper waste like printed brochures and flyers.
Virtual seminars give you the flexibility to choose what dates and times work best for you. Sometimes seminars will cover the same topic at separate times so that you can attend the session that best suits your schedule. Plus, virtual webinars will often allow you to access the recording and materials after the session; meaning if you miss the live session, you can go back and listen at your leisure.
3. Variety of Topics
With so many topics to choose from, you are pretty much guaranteed that there will be a seminar that matches your interest. Virtual seminars are often timely, providing relevant information that allows attendees to learn something current and new in any environment.