A Variety of IRAs Perfect For Making Your Retirement
Dreams Come True
Saving for retirement has never been more important, and millions
of Americans have learned that IRAs are one of the best savings
tools available. Not to mention these personal savings opportunities
may also get you a break on your taxes. Ascension Credit Union
offers several account types to meet your savings needs.
This IRA is easy to maintain and offers members important
tax advantages such as deductible contributions and tax-deferred
earnings.
Who can contribute?
- Anyone under age 70 ½ who has an earned income.
How much can I contribute?
- $5,000 for individual; $10,000 for married couple for
2010
- For owners age 50 and older, your limits increase to
$6,000 for 2010
- Cannot exceed compensation
- Reduces the contributions that can be made to Roth IRA’s
What are the tax advantages?*
- Earnings grow tax-deferred until withdrawn
- Contributions may be tax-deductible
- Distributions for a first-time home purchase or higher
education expense may be penalty-free
*Not intended as tax advice. Please consult your tax advisor about all tax options
Can Traditional IRA assets be moved?
- IRA holders can take comfort in the fact that their IRA
assets are always available to them and can be moved under
certain circumstances and if:
- withdrawn (distributed) and redeposited elsewhere
(known as a rollover) within 60 days
- moved to another organization (known as a trustee-to-trustee
transfer)
Earnings from
a Roth IRA that are distributed in a qualified manner are not
subject to federal income tax.
Who can contribute?
- Anyone who has earned income (or who is filing jointly
with a spouse who earns compensation), with the following
MAGI (Modified Adjusted Gross Income from your federal
tax form):
- Up to $105,000 for single filers
- Up to $167,000 for joint filers
- Reduced contributions allowed for higher incomes:
- Up to $120,000 for single filers
- Up to $177,000 for joint filers
How much can I contribute?
- $5,000 for individual; $10,000 for married couple for
2010
- For owners age 50 and older, your limits increase to
$6,000 for 2010
- Cannot exceed compensation
- Reduced contributions that can be made to traditional
IRA?s
What are the tax advantages?*
- Earnings can be tax and penalty free if account is open
for five tax years and one of the following are met (reach age
59 ½ , disability, death, or first-time home
expenses up to $10,000)
- Not required to start withdrawals at age 70
*Not intended as tax advice. Please consult your tax advisor about all tax options.
Can I move money from my Traditional IRA to my
Roth IRA?
- "Yes," but there are specific rules that
govern the process of converting funds from a Traditional
IRA to a Roth IRA. You should seek advice from a competent
tax advisor to determine whether moving your funds is beneficial
to you.
Finance a beneficiary’s qualified education
expenses with contributions to a Coverdell Education Account.
Who can contribute?
- Anyone who has an earned income (or who is filing jointly
with a spouse who earns compensation), with the following
MAGI (Modified Adjusted Gross Income from your federal
tax form):
- Up to $95,000 for single filers
- Up to $190,000 for joint filers
- Reduced contributions allowed for higher incomes:
- Up to $110,000 for single filers
- Up to $220,000 for joint filers
- Contributions NOT ALLOWED:
- Once the beneficiary of the Education IRA reaches
age 18
- In any year that a contribution is made to a state
tuition program for the same beneficiary
How much can I contribute?
- $2,000 per child per year, until the child reaches age
18
Am I allowed to change the Beneficiary?
The responsible individual may change the designated beneficiary
(child). An example of why someone may wish to change the beneficiary
is the current beneficiary has completed their education and
there are funds remaining. The only stipulation is that the
new beneficiary must be an eligible member of the family.
What are the tax advantages?
- Withdrawals may be made tax and penalty free for qualified
expenses (tuition, fees, books, supplies, room & board)
*Not intended as tax advice. Please consult your tax advisor for all tax options
If you would like more information or have specific questions
about your situation, stop by or give us a call and one of
our qualified professionals can assist you! Also, you can consult
your tax planner for more information.
|
