IRA Accounts - Retirement dreams start here

Retirement may seem like a long way off, but at FFCU we can make it easy to work towards your dream.   

Direct deposit with automatic deductions to an IRA is painless and smart.  You'll be surprised at how much you can accumulate towards retirement, maybe early retirement, with as little as $50 per week. In fact, you may even get a break on your taxes too!  (Talk to your tax advisor to determine eligibility)

IRA Savings vs. IRA Share Certificates - each of the IRAs listed below can be invested in either an IRA Savings or an IRA Share Certificate.  With a certificate you earn a higher rate, but your money is tied up for whatever period of time stated on the certificate.  Savings accounts earn less, but are a little more flexible when it comes to withdrawals.

Roth IRA
The latest and greatest in the IRA world is the Roth, named after the lawmaker who sponsored the bill.  You can contribute up to $4,000 per person into a Roth IRA for tax years 2005-2007 if you are under age 50. For Roth IRA owners age 50 or over, the limits increase to $4,500 for 2005, and $5,000 for 2006 and 2007.   It doesn't matter if you already have a pension, 401K or KEOGH where you work . . . the Roth IRA works in combination with your other retirement plans.
Click here for a Roth IRA Q and A.

Traditional IRA
With this IRA you contribute money and take a tax deduction for it (some exceptions may apply), then let it grow until retirement. The money is taxed when you withdraw later in life, hopefully in a lower tax bracket.  You can contribute up to $4,000 per person into a Traditional IRA for tax years 2005-2007 if you are under age 50. For Traditional IRA owners age 50 or over, the limits increase to $4,500 for 2005, and $5,000 for 2006 and 2007. 

The main restriction on this type of IRA is that your annual contributions are only tax deductible if you're NOT covered by a pension, 401K, KEOGH or other retirement plan where you work.
Click here for a Traditional IRA Q and A.

Coverdell Education Savings Account (ESA)
You can use a Coverdell Education Savings Account to pay for any kind of education; public or private, grade school, high school or college.  It can also be used to pay for virtually any education-related expense; tuition, fees, books, supplies, room and board, uniforms and more.  You can contribute up to $2,000 per child each year (subject to some income limitations).  The money goes into a custodial account for benefit of the child to pay his/her qualifying expenses.
Click here for a Coverdell Education Savings Account (ESA) Q & A.

Call one of our IRA professionals at 419-334-4434 in Fremont or 419-849-2570 in Woodville or stop into your favorite Fremont Federal Credit Union office for more information.