Individual Retirement Accounts (IRAs)
Building Blocks for the Future!
Your Retirement
Church Extension Fund offers both Traditional and Roth Individual Retirement Accounts (IRAs), both represent an effective and convenient way to build a secure financial future and comfortable retirement.
Traditional IRAs
Traditional IRAs allow your assets to grow
tax-deferred inside the IRA, which means you will not pay taxes until the
assets are withdrawn. For many investors, contributions to a Traditional
IRA will also be tax deductible in the year they are made.
Roth IRAs
Roth IRAs let your assets grow federally tax-free, meaning you will never
have to pay Federal income taxes on your earnings once with-drawn provided
certain
requirements
are met. Anyone who has earned income can contribute to either of these
plans.
In both plans your earnings are reinvested without being reduced by taxes (tax deferred compounding). You can open a Church Extension Fund IRA for as little as $100 and, after your initial contribution, you can add to your account directly from your bank in increments as low as $25 using Automatic Cash Transfer (ACT). When opening an IRA, remember that Federal law allows you to contribute to your CEF account from January 1 until the filing date of your tax return for that year, generally April 15 of the following year.
IRA Transfers and Rollovers
If you already have an IRA or Qualified
Retirement Plan, you can easily transfer it into a CEF plan. A transfer
may be a smart choice when changing jobs or retiring early.
The tax-deferred status is maintained on
a direct transfer into a CEF account so more of your investment dollars keep
compounding. There are no age, income, or dollar amount restrictions
on transfers
or rollovers.
We can facilitate a rollover or transfer of your existing IRA into a designated account at CEF. A telephone call to our office will start the process and your retirement dollars will be used to build churches until you have need of them.
Your Children's Education
It is never too early to start planning for your children’s or grandchildren’s
education, especially in the face of skyrocketing costs. Church Extension
Fund also offers valuable
building blocks to accomplish these ends:
Coverdell Education Savings Accounts
Unlike IRAs, Coverdell Education Savings
Accounts, formerly known as “Education IRAs”, are not retirement
planning tools, but can be more accurately described as education investment
accounts. Contributions are non-deductible. Proceeds may be used for qualified
education expenses and are free from Federal taxation. Contributions do
not count toward the combined IRA limit. Qualified expenses include, but
are not limited to, computer equipment and soft-ware used for educational
purposes, tutoring, books and school supplies. Proceeds may also be used
for primary
and secondary education expenses.
Eligible investors, including parents, grandparents, relatives and friends who meet modified adjusted gross income (MAGI) requirements can make contributions per child per year until the child’s 18th birthday, or later under special needs. Since a child’s long-term higher education plans may not be fore-seeable; the Coverdell ESA may be trans-ferred from one family member to another.
You…
can put in place the building blocks for a solid financial future for
every generation in your family — and enjoy the added satisfaction
of knowing your investment is also building up God’s kingdom
in the Michigan District — simply by calling this toll-free number
today: 800-242-3944.
