Traditional IRA

Members under the age of 70˝ 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 $5,500 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 $70,000 (if single) or $116,000 (if married). Please consult a qualified tax professional.
  • Individuals age 50 years or older may contribute an additional $1,000 in 2014 under the catch-up provision.
Individuals age 50 years or older may contribute an additional $1,000 in 2014 under the catch-up provision.

Traditional IRA Features:
  • Contribution limits - 100% of your Annual Gross Income or $5,500 in 2014, whichever amount is less
  • Additional IRA catch-up contributions of $1,000 per year in 2014 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.

*Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with SchoolsFirst Federal Credit Union to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution.

CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.

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