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Earning

Retirement Accounts

Account Management

Retirement Accounts

An individual retirement account (IRA) is a savings account with tax advantages that individuals can use to save and invest long-term. Like a 401(k) account that an employee obtains as a benefit from their employer, an IRA is designed to encourage people to save for retirement. Anyone who has earned income can open an IRA and enjoy the tax benefits these accounts offer.

Staff will be required to open and maintain a personal Retirement Savings Account (RSA) in their own names after which they would be issued a unique Personal Identification Number (PIN) by the National Pensions Commission which is linked to the given Aufin Bank Account Number.

The overall aim is to ensure that upon retirement, loss of job, invalidity or death, employees under the scheme would have access to some income through the various pension options.

Funds under the scheme are invested on behalf of the Contributors. Our Retirement Savings Account (CPL Value Fund) has consistently provided superior returns (relative to competition) on investment for all our contributors for the past eight years.


What happens if I withdraw money from my retirement account early?
Retirement accounts are meant to be long-term, and so they come with early withdrawal penalties. If you take money out of a retirement account before age 59½, you will be subject to a 10% penalty and must pay any deferred tax liability owed. So, if you withdraw $10,000 from a traditional account and are in the 25% tax bracket, you will pay a $1,000 penalty (10%) plus $2,500 in taxes, leaving you with $6,500. There are certain qualified reasons for making an early withdrawal—such as for a first home or emergency medical expenses—that are not subject to the 10% penalty but would be taxed.


What happens to my retirement assets when I die?
Retirement accounts are meant to be long-term, and so they come with early withdrawal penalties. If you take money out of a retirement account before age 59½, you will be subject to a 10% penalty and must pay any deferred tax liability owed. So, if you withdraw $10,000 from a traditional account and are in the 25% tax bracket, you will pay a $1,000 penalty (10%) plus $2,500 in taxes, leaving you with $6,500. There are certain qualified reasons for making an early withdrawal—such as for a first home or emergency medical expenses—that are not subject to the 10% penalty but would be taxed.

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