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Saving for your future!
IRA stands for “Individual Retirement Account,” and Call FCU offers three types of these tax-advantaged savings-accounts. The types of IRA's we offer are:
These three are described at length below.
Traditional IRA
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Contributions to this type of IRA may be tax deductible in the year the contributions are made, and taxes due on the earned interest are deferred until the funds are withdrawn.
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Deductibility for tax purposes depends on active participation in a qualified retirement plan and/or taxable income.
Roth IRA
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Contributions are post-tax, and growth may be tax-free.
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Since withdrawals are not reportable income, they won't affect your adjusted gross income during retirement.
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Contributions can be made after age 70½, and no withdrawals are required during the accountholder's life.
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Withdrawals from a Roth IRA are tax- and penalty-free as long as the account has been open for at least five tax years and you are either over 59 1/2, disabled or buying a first home.
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Contributions are not allowed if you have earned income greater than $110,000 (single) $220,000 (married)
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Deposit can be made up to April 15th for the previous year
Traditional and Roth IRA Aggregate Annual Contribution Limits
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Tax Year
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Individual
Contribution Limit
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Spousal
Contribution Limit
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Additional Catch Up
Amount for Owners
Ages 50 and Older
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2007
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$4,000
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$8,000
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$1,000 ($5,000 total)
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2008
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$5,000
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$10,000
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$1,000 ($6,000 total)
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Coverdell Savings Account (former Educational IRA)
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Gives flexibility to families saving for college tuition and other related expenses.
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Up to $2,000 per year may be deposited for each child under age 18.
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Anyone can make a contribution - parents, grandparents, relatives, or friends
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Earnings and withdrawals are tax free if used for educational expense by age 30
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Can be transferred to another child in family
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10% penalty if used for another purpose
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These contributions are not tax deductible, but dividends earned are tax free.
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Deposits can be made up to April 15th
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