Invest in a Fixed Rate Term Share Account or a Variable Rate Share IRA Money Market Account. The Share IRA Money Market requires no minimum deposit and dividends are compounded and paid monthly. The Fixed Rate IRA offers you a choice of 18 to 120 month maturity terms. There are no administrative fees.

A Credit Union IRA allows you to save as your budget allows, up to the maximum contribution allowed by federal regulations. For more convenience, consider an allotment or Direct Deposit/Sure Pay. Be sure to ask us about Roth and Coverdell Education Savings Account.

Individual Retirement Accounts: Better Than Ever!

The 2001 tax law makes IRA's and Education Accounts
more attractive than ever - here's how:

An Individual Retirement Account (IRA) is an excellent tool for retirement savings. Unlike most investments, depending on the type of IRA you choose, contributions may be tax deductible and will grow either tax-deferred or tax-free.  A Coverdell Education Savings Account (ESA), formerly Education IRA, is a great way for parents, grandparents and others to help meet the rising costs of a student's education.  Recent tax law changes have made IRAs and ESAs even better. 

TRADITIONAL IRA
For tax years beginning before 2002, the annual contribution limit is $2,000. The limit increases to $3,000 in 2002, $4,000 in 2005 and $5,000 in 2008. After 2008, the contribution limit will be adjusted annually for inflation in $500 increments. The annual limit applies to any combination of IRA plans other than the ESA. Contributions are fully tax deductible if you are not an active participant in an employer retirement plan. Otherwise, phaseout rules apply. Investments grow on a tax-deferred basis. Earnings are taxed only upon withdrawal.

ROTH IRA
As long as you have earned income, you can establish and contribute to a Roth IRA even after age 70 1/2. While contributions are not tax deductible, contributions and earnings can be withdrawn tax-free, and unlike traditional IRAs, you are not required to begin taking required minimum distributions after reaching age 70 1/2. By converting your traditional IRA to a Roth IRA, you can enjoy tax-free withdrawals.  However, the amount you convert is subject to income tax now.

EDUCATION SAVINGS ACCOUNT
ESA's allow you to put away up to $500 this year for higher education expenses, earning interest tax-free. For taxable years beginning in 2002, the annual contribution amount has been increased from $500 per beneficiary to $2,000 per beneficiary. While there is no tax deduction for amounts contributed to an ESA, earnings grow tax-free. And, starting in 2002, your ESA can be used to pay qualified elementary school and secondary school expenses as well as those for higher education.

Catch-up contributions
For taxable years beginning in 2002, individuals who have reached age 50 by the end of the year will be able to make additional catch-up contributions of $500 per year to their traditional or Roth IRA. For taxable years beginning in 2006, the additional catch-up
amount increases to $1,000.

Contact your credit union today to learn more about today's IRA!