Traditional IRA
Saving for retirement has never been easier.

Traditional IRAs offer:
  • Independence. They can be opened and funded without any employer participation.
  • Immediate tax benefits. Contributions may be tax-deductible,* and earnings are tax-deferred until retirement. See your tax advisor for details.
  • Accessibility. Funds are always available, something not generally true of employer plans.
  • Flexibility. There is no minimum contribution in any year.
Open to:
  • Any member who is under age 70 1/2 and earns compensation, or files a joint tax return with someone who earns compensation.
  • Key Features:
  • All earnings are tax-deferred.
  • Contribution limits for 2012 are up to $5,000 for those under age 50 and up to $6,000 for those age 50 and older.**
  • Contributions to a Traditional IRA are fully tax-deductible if you (and your spouse, if married) do not participate in an employer-sponsored retirement plan.
  • If you participate in an employer-sponsored plan, deductibility of your contributions to a Traditional IRA are determined by adjusted gross income (AGI):*
  • Single individuals earning less than $58,000 may deduct their full contribution. Single individuals earning between $58,000 and $68,000 may take a partial deduction.
  • Single individuals with an AGI of $68,000 and over may not deduct their Traditional IRA contributions.**
  • You can deduct your full contribution to a Traditional IRA if you are married with a joint AGI of less than $92,000. You may take a partial deduction if your AGI is between $92,000 and $112,000; if your joint AGI is over $112,000, you may not deduct your IRA contribution.**
  • If you do not participate in a retirement plan at work but your spouse does, you can take a full deduction if your joint AGI is $173,000 or less. The phase out for deductible contributions is $173,000 to $183,000; above an AGI of $183,000, you cannot take a deduction for your contribution.**
  • All questions on deductibility must be referred to an accountant or tax specialist.
  • Distributions will be made upon receipt of a signed IRA withdrawal statement.
  • All distributions must be claimed on tax returns as income, and are subject to income tax.
  • IRAs are insured separately from your other deposit accounts, up to $250,000 by the National Credit Union Administration.
  • Restrictions:
  • Premature withdrawals (distributions) made before age 59 1/2 may be subject to a 10% penalty from the government. Members may elect to have 10% of the distribution withheld as a pre-payment of their taxes and/or penalties.
  • Required minimum distributions (RMDs) must be made starting at age 70 1/2.
  • Charges:
  • No costs, charges or required minimum balances
  • * Consult your tax advisor for details.
    ** Figures are for 2012 only. They will be indexed to inflation in future years.
  • Is a Traditional IRA right for you?
  • Run the numbers with our online Calculators.
  • Explore the tax implications for Individual Retirement Accounts: IRS: Frequently Asked Questions about IRAs.
  • Talk to one of our certified financial counselors or request a FREE consultation.
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