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IRA Accounts

America's Credit Union can provide you with Individual Retirement Account (IRA) options to meet your needs.  The sooner you start and the more you contribute, the better your financial future will be.

Traditional IRA

You can contribute to a traditional IRA if you have earned income and if you have not reached age 70 1/2 by the end of the year.

Traditional IRAs offer tax-deferred earnings, and the possibility for tax-deductible contributions.  (Consult your tax advisor for complete details).

You can contribute according to the chart below, or 100% of earned income, whichever is less.

Roth IRA

Roth IRA contributions are allowed at any age as long as the IRA owner has earned income and meets the required Modified Adjusted Gross Income level.

Since a Roth IRA is after-tax money, it can be withdrawn without a penalty.  If dividends remain for 5 years, they become tax-free when withdrawn for qualified reasons such as reaching age 59 1/2, buying a first home or becoming disabled.

All Roth IRA contributions are nondeductible.

You can contribute according to the chart below or 100% of earned income, whichever is less.

Traditional and Roth IRA Annual Contribution Limits
Year
Individual Contribution Limit
Spousal Contribution Limit(Split Between Spouses)
Additional "Catch-Up "Amount for Owners Ages 50 and Older
2012
$5,000
$10,000
$1,000
(Total of $6,000)

Coverdell Education Savings Account

The purpose of the Coverdell Education Savings Account is to help you pay for your child's education expenses such as tuition, fees, books, supplies, and room and board.  Starting in 2002, the new tax law expands the definition of qualified education expenses to include qualified public and private elementary and secondary education expenses.

You can make contributions until the child reaches 18 years of age.

The depositor/contributor does not need to have a particular relationship to the child, but the individual responsible for overseeing the account must be a parent or legal guardian.

Contributions are not tax-deductible.  However, an Education Savings Account offers you the potential for tax-free withdrawals including earnings.

Starting in 2002, you can make contributions to an Education Savings Account of up to $2,000 per year (increased from the previous $500 limit) per child.