Individual Retirement Account Shares
- Contributions are not tax deductible. Qualified withdrawals are tax-free.
- Earnings grow tax-deferred.
- Withdraw contributions tax-free any time. Withdraw interest earned free of any IRS penalties after five years to buy a first home or for any purpose after the age 59 1/2.
- Contributions can be made after age 70 1/2.
- Unlike Traditional IRAs, distributions are not required at age 70 1/2.
- Transfer funds from existing Traditional IRAs to a new Conversion Roth IRA (subject to taxation).
- This is a fixed rate option.
Traditional IRA
- Contributions may be tax deductible. Qualified withdrawals are taxable income.
- Contributions to a Traditional IRA may be fully or partially deductible depending on your income level and whether or not you are considered an active participant in an employer-sponsored plan.
- Earnings are tax deferred until withdrawn.
- Withdrawals before age 59 1/2 may be made without penalty to help finance a higher education or your first home.
- Required Minimum Distributions at age 70 ½.
- Choose fixed or variable rate options.
|
IRA Contribution Limits Year |
Age 49 & Below |
Age 50 & Above |
|
2008 |
$5,000 |
$6,000 |
|
2009 |
$5,000 |
$6,000 |
|
2010 |
Indexed to Inflation |
Indexed to Inflation |
|
Roth IRA Phase-out Range & limits Year |
Single |
Married Filing Jointly |
|
2008 |
$101,000-$116,000 |
$159,000-$169,000 |
|
2009 |
$105,000-$120,000 |
$166,000-$176,000 |
|
2010 |
Limit Removal |
Limit Removal |
You can contribute to a Roth IRA if your income falls below the Roth limits. You're
allowed a prorated contribution if your income falls within the "phase-out" range. If your
income exceeds the income range you won't qualify for a Roth IRA contribution.
Individual Retirement Account Certificates
Retirement certificates are available that qualify for special tax treatment. The Credit Union pays higher rates on the dollars you set aside for retirement in your IRA certificate. Ask our staff for more detailed information on IRAs.
