| The following chart indicates how
contribution limits for traditional IRAs will rise from 2001 to 2008.
YEAR |
MAXIMUM CONTRIBUTION |
"CATCH UP"
CONTRIBUTION |
| 2002 |
$3,000 |
$ 500 |
| 2003 |
$3,000 |
$ 500 |
| 2004 |
$3,000 |
$ 500 |
| 2005 |
$4,000 |
$ 500 |
| 2006 |
$4,000 |
$1,000 |
| 2007 |
$4,000 |
$1,000 |
| 2008 |
$4,000 |
$1,000 |
Individual Retirement Accounts offer the opportunity to save for retirement in one of two
ways.
The Traditional IRA is the only IRA that may allow
tax-deductible contributions. It is designed for members that are looking for a tax
savings now and who expect a lesser tax burden after they reach the age of 59 1/2.
The Roth IRA is "back loaded", which
means that contributions are made after taxes. The trade-off is that your investment
earnings are tax-free. Funds can be withdrawn if:
- You are over age 59 1/2
- Funds are going to your beneficiary upon your death
- You have become disabled
- Funds are being used for first time home purchase (lifetime limit is $10,000 per
person)
Either IRA can be opened for as little as $100.00. Deposits can continue to be
made regularly via payroll deduction or ACH (automated clearing house) until the
maximum yearly contribution ($2,000) is reached.
IRA Certificates
Categorized as "Add-on Certificates", IRA Certificates require an initial
deposit of $1,000.00. They are available in 12 month, 24 month, and 60 month terms.
Dollars can be added on throughout the year in increments of $1.00 until $2,000 is
reached.
View our Account Disclosures for account
terms and conditions. |
