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Individual Retirement Accounts
DEPOSIT INSURANCE INCREASED...An IRA is an intelligent investment because of the tax advantages and how it helps you save for retirement. Now there's an even greater reason to get an IRA at Brewer Federal Credit Union if you don't already have one. Your IRA is now insured up to $250,000.
Invest in your future today. We offer a variety of IRA's that will meet your needs:
- Traditional
- Roth
- HSA
- SEP
- Rollover
Investment options to choose from:
- IRA Share Account
- IRA Certificate Account
Benefits:
- You may be able to defer taxable income, which reduces your income tax liability
- No annual or maintenance fees
- You can even set up payroll deduction to make it convenient to save for your future
For for information about IRA's click here
CHOOSE THE IRA THAT MEETS YOUR NEEDS
Know your IRA options using the quick guidelines for Traditional, Roth, HSA, or SEP
Traditional Individual Retirement Account (IRA)
• Who can contribute?
Anyone under age 70 ½ who has income from compensation (or who is filing jointly with a spouse who earns compensation)
Anyone who has received a distribution from a qualified retirement plan and decides to roll over the proceeds of the plan into any IRA
• How much can I contribute?
You may be able to contribute up to $5000 for 2008-2009
For owners age 50 and older, your limits increase to $6000 for 2008-2009
Cannot exceed compensation
Reduces contributions that can be made to Roth IRA's
• Who can make deductible contributions?
Single individuals, not active in employer retirement plans
Single individuals, active in an employer retirement plans with MAGI* of less than: $45,000 (2005-2010)
Married couples with neither spouse active in an employer retirement plan
Married individuals active in employer retirement plans with joint tax returns showing MAGI of less than:
$70,000 (2005)
$75,000 (2006)
$70,000 (2007-2010)
Married individuals where one spouse is not active in an employer retirement plan and one spouse who is active in an employer retirement plan, with MAGI of $150,000 or less
• What are the tax advantages?
Earnings grow tax-deferred until withdrawn
Contributions may be tax-deductible
• When can I withdraw without restrictions?
Qualified higher-education expenses
First time home purchase**
Age 59 ½
Disability
Qualifying medical expense exceeding 7.5% of adjusted gross income
Payment to beneficiaries upon the owner's death
Payment of health insurance premiums while unemployed for 12 weeks or longer
Roth IRA
• Who can contribute?
Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation, with the following MAGI:
UP to $95,000 for single filers
Up to $150,000 for joint filers
Reduced contributions allowed for higher incomes:
Up to $110,000 for single filers
Up to $160,000 for joint filers
• How much can I contribute?
You may be able to contribute up to $5000 for 2008-2009
For owners age 50 and older, your limits increase to $6000 for 2008-2009
Cannot exceed compensation
Reduces contributions that can be made to traditional IRAs
• Who can make deductible contributions?
No one can deduct contributions
• What are the tax advantages?
Earnings are tax-free if account is open for five tax years and withdrawn for a qualified reason (age 59 ½, disability, death or first time home purchase**)
Not required to start withdrawals at age 70 ½
• When can I withdraw without restrictions?
Regular contributions can be withdrawn tax-free and penalty-free at any time
After the account has been open five tax years, earnings can be withdrawn tax-free and penalty fee for any of these reasons: age 59 ½, disability, death, or a first-time home purchase**)
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