Roth IRA
The Roth IRA was named after former Senate Finance Committee Chairman William Roth. Although Roth IRA contributions are not tax-deductible, they do offer a potentially greater tax benefit. All contributions and earnings left in the Roth IRA for at least five years and withdrawn after age 59½ will not be taxed, no matter what your tax bracket or income level. And, unlike the Traditional IRA, you do not have to start withdrawing money when you reach age 70½.
You may qualify to contribute up to $5,000 per year to a Roth IRA if your total income does not exceed $110,000 if single or $160,000 if married and filing a joint tax return. If you are age 50 or older, you may contribute an additional $1,000 in 2009 under the catch-up provision.
- Individuals with an Adjusted Gross Income (AGI) of $110,000, and married individuals with an AGI over $160,000, are not eligible to contribute to a Roth IRA.
- Married individuals filing a separate tax return, regardless of income, are not eligible for a Roth IRA.
- Contribution limits - 100% of your Annual Gross Income or $5,000 in 2009, whichever amount is less
- Additional IRA catch-up contributions of $1,000 per year in 2009 will be allowed for those age 50 or older
You can potentially maximize your tax savings by selecting the IRA that is right for you. As with any retirement plan, we encourage you to check with your tax advisor or discuss your retirement needs with one of our
financial advisors. You can also learn more about IRAs at our
IRA Service Center.
*Representatives are registered, securities are sold, and investment advisory services are offered through CUNA Brokerage Services, Inc. (CBSI), member
FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value, and are not obligations of or guaranteed by SchoolsFirst FCU. CBSI is under contract with SchoolsFirst FCU, through the financial services program, to make securities available to Members.
CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty states of the United States of America.
