The Croatian Fraternal Union of America (CFU) offers to our members and prospective members the opportunity to plan for their retirement future. The opening of an Annuity/IRA (Traditional/Roth) account can prove to be a very sound financial decision. CFU has always paid a generous minimum guaranteed interest rate on all of our Annuity/IRA products.
The initial deposit needed to open an Annuity/IRA account with the CFU is $3,000 or greater. CFU offers a zero (0) surrender, a five (5) year surrender, and an eight (8) year surrender charge contract.
The Croatian Fraternal Union offers three (3) different Annuity / IRA plans:
- The CFU Annuity Plan provides for tax deferred accumulation of interest dollars with a flexible interest compounded annually. The interest accumulation is not taxed until it is withdrawn. When a withdrawal is taken from the Annuity, ordinary income tax must be paid on the amount withdrawn. Tax is only deferred, not eliminated in the Annuity Plan. There is also a Federal penalty tax (10% of the taxable amount withdrawn) for withdrawal before age 59 ½, unless the Annuitant dies or is disabled.
- The Roth IRA does not allow deductible contributions; however, it offers significant tax advantages that are “backloaded.” The interest earned and accrued on the invested dollars within the account may be tax free depending on how and when the taxpayer withdraws money from the account. To be treated as a Roth IRA, the account must be designated as such when it is established.
- The Traditional IRA is a tax-advantaged arrangement that allows earnings and deductible contributions to grow tax-deferred, which means there is no income tax on the earnings and deductible contributions of the IRA until the member begins taking withdrawals (which is usually after retirement when individuals are generally in lower tax brackets). Contributions may be deductible from gross income on your federal tax return for the year in which contributions are made. Earnings grow on a tax-deferred basis.
We strive to fulfill our members’ financial needs for life. Secure a confident future with quality products such as our Annuity/IRA products.
Annuity/IRA products are available in the U.S. only.
For further details regarding current rates on CFU Annuity/IRA products, please contact the CFU Home Office.