Save all at once
Maybe you make yearly contributions to your Individual Retirement Account (IRA), which is a smart move. But don’t overlook a simple way to boost your long-term IRA earnings—contribute early in the year.
If you are one of those people who waits until the last minute to contribute to your IRA, you are missing out on an opportunity.
It’s true that you may apply IRA contributions (up to the current limit) by April 15 to the previous tax year for both traditional and Roth IRAs. But contributing early in the year allows your money more time to grow.
For example, making your contribution early in the tax year instead of on tax day gives you up to 15 extra months of growth for your money. Factor in the years of contributions before retirement, and you may be looking at a nice chunk of change.
Save over time
For many people, however, making one large contribution isn’t feasible regardless of when you write the check. That’s why we make it easy to contribute through SmartPlan IRA, an electronic transfer system that allows you to move money into your Member Benefits IRA from your bank, savings and loan, or credit union automatically. It’s free and easy to do.* You can even select the day of the month you want your contributions to process. With SmartPlan IRA, your contributions are spread out over the year with smaller, more manageable contributions.
If you are not currently contributing to an IRA, consider making it part of your savings plan. An IRA is a great way to increase your retirement savings and take advantage of tax benefits. And regardless of which way you save, contributing regularly is a smart way to build your retirement savings.