Traditional IRA
Members under the age of 70½ who have earned income and would like to defer taxes on retirement funds should consider the Traditional IRA. Regardless of income or participation in other pension plans, taxes on Traditional IRA earnings are deferred until you withdraw the money, usually during retirement when you will most likely be in a lower tax bracket. Many wage earners can also deduct some or all of their contributions to a Traditional IRA.
You may be eligible to make up to a $5,000 tax-deductible contribution per year to a Traditional IRA if:
- You are not covered by an employer retirement plan
- You are covered by an employee retirement plan but your income doesn’t exceed $60,000 (if single) or $80,000 (if married). Please consult a qualified tax professional.
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Individuals age 50 years or older may contribute an additional $1,000 in 2009 under the catch-up provision.
Individuals age 50 years or older may contribute an additional $1,000 in 2009 under the catch-up provision.
Traditional IRA Features:
- 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.
