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IRA's,
RETIREMENT & YOU
When is the right time to start planning for your retirement? The answer is NOW, and your credit union can help. IRA and Roth IRA rates yield 3.35% annually, and there is also a 3.75% APY(annual percentage yield) on 36-month IRA Certificates.
Your credit union has several options that will help your retirement savings, which includes individual retirement accounts (IRA's). An IRA is a tax-sheltered savings plan that allows you to control your retirement planning. The earnings are tax-deferred until you begin withdrawing from your account. There are different types of IRA's, which include the Traditional, Roth and Education IRA's. These three types allow you to pick the retirement account that will best meet your needs and lifestyle requirements.
Tax law changes that make IRAs more practical than ever before...
The Economic Growth and Tax Relief Reconciliation Act of 2001 presents a number of new opportunities to save more in your Traditional and Roth IRA retirement plans - for 2002 and beyond!
- Annual Contribution Limits Increased
Beginning in 2002, annual limits on contributions to a Traditional or Roth IRA are increased as follows..
- For years 2002 through 2004, limit increased to $3,000.
- For years 2005 through 2007, limit increased to $4,000.
- For 2008, limit increased to $5,000.
- For 2009 and 2010, limit increased to $5,000 (indexed for inflation in $500 increments)
If you meet the eligibility requirements and file a joint federal income tax return, you can contribute the above amounts not only to your own IRA, but also to a separate IRA for a spouse without earned compensation.
- Age 50 and over Catch-up Contributions Introduced
In 2002, people age 50 and over can contribute an additional $500 over the contribution limit to help them "catch up" on their retirement savings. This catch-up amount increases to an additional $1,000 per year above the applicable contribution limit in 2006 and subsequent years.
- Low-Paid Saver Tax Credits Available
For the 2002 through 2006 tax years, annual IRA contributions of up to a maximum of $2,000 may result in a new tax credit for low-paid savers. This nonrefundable credit can total a maximum $1,000 for the lowest income earners, and as much as $400 or $200 for other eligible taxpayers.
YOU CAN BENEFIT FROM THESE CHANGES!
The time is NOW to begin saving for your retirement - don't let another day go by without starting an IRA! Even a modest monthly amount added to your initial deposit can add up to a comfortable retirement. Talk to your credit union professional today to discover which IRA is best for YOU!
Rates/Yields accurate as of 2/13/2008, but are subject to change without notice.
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