Individual Retirement Accounts The Individual Retirement Account (I.R.A.) is a long term savings plan with special tax advantages.
 Annual deposits to an I.R.A. may be deductible from income for tax purposes.
- Your I.R.A. may be tax deductible if you have no company sponsored Pension Plan.
- All the earnings you accumulate in your I.R.A. are tax-sheltered until withdrawal.
- If you are under age 70 1/2 for the entire tax year and have compensation, you are eligible to establish an I.R.A.
- Brochures Available at the Credit Union
- I.R.A. accounts are insured to $250,000.
Roth IRA
This new IRA Account allows up to $4,000* non-deductible deposits with all earnings free of federal income tax if the money saved is on deposit for five years or more. Another feature of this account permits funds to be withdrawn penalty-free for qualified education expenses and can be both penalty-free and tax-free for first-time home purchases up to $10,000. The Roth IRA is phased out for individuals with an adjusted gross income of $95,000, ($150,000 for joint filers).
*Contribution limit for age 50 and over $4,500
Traditional IRA
This IRA allows a deductible deposit of up to $4,000* for those who qualify and the earnings are tax-deferred until time of withdrawal. Under the new law, penalty-free withdrawals are allowed for education and first-time home buyers.
*Contribution limit for age 50 and over $4,500
Education IRA
As of January 1, 2002, this non-deductible IRA allows contributions up to $2,000 per year/per child annually for the benefit of a child's education. Earnings will be tax-free for qualified education expenses. Contribution to this account is phased out for individuals with adjusted gross income of $95,000 ($190,000 for joint filers).
The Tax Relief Act of 1997 gives you a great opportunity to plan for a more secure future. Stop by our office and speak to our IRA specialist for more details.
| 
SEPTEMBER 8, 2010 
Home
