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.
|