IRA (Individual Retirement Account)
In addition, many wage-earners are eligible for a full federal tax deduction. Some wage-earners are eligible for a partial deduction; others, no deduction.
You are allowed to put $2,000 per child, per year, into a Coverdell Education Savings Account. That's $1,500 more per year than previous limits.
IRA Builder Accounts are offered exclusively at Buckeye State Credit Union. You can build your IRA balance through payroll deduction. Another of the many advantages of Membership with Buckeye State Credit Union.
Buckeye State Credit Union has your “best interest” at heart.
Many other financial institutions charge fees to open or close an IRA. Buckeye State Credit Union charges no fee to open, maintain, or close our IRAs.
Others may require a large minimum deposit to open their IRAs. Buckeye State CU will let members open an IRA with even a zero balance if they have signed up to fund it with payroll deduction. You may add any amount at any time to a BSCU IRA.
It is called an IRA Builder account because we want to encourage members to start saving for retirement no matter how much, or how little, they can afford to put in.
When you have a substantial amount built up, we encourage you to withdraw it and roll it over to an IRA that might be a stock market account or other investment venue for maximum returns.
Greater catch-up contributions.
Individuals age 50 and over can now exceed the regular annual contribution limit by $1000 through tax year 2009!
Move rollover options
It’s a smart move to roll assets from your retirement plan into a traditional IRA when changing jobs or retiring. By choosing a direct rollover - instead of the cash payment option - you delay taxes, avoid mandatory 20% federal withholding and other tax penalties. Until 2002, you could only roll taxable distributions from your 401(k) and 403(b) plans over to an IRA. Today, funds from governmental 457(b) plans are also eligible for rollover.
When can I withdraw from a Traditional IRA?
You can withdraw funds from your IRA any time after you reach age 59 1/2. Distributions taken prior to age 59 1/2 are subject to a 10% early withdrawal penalty unless the distribution is:
-Made to a beneficiary due to the account holder's death.
-Made to an account holder who has become permanently and totally disabled.
-Made as part of a series of "substantially equal" periodic payments.
-Used to pay medical expenses in excess of 7.5% of the account holder's adjusted gross income.
-Used to pay health insurance premiums for participants unemployed 12 or more weeks.
-Up to $10,000 used for the first time purchase of a home.
-Used to pay for qualified higher education expenses.
Distributions must start by April 1 following the year in which the participant reaches age 70 1/2. Failure to begin distributions at this point will impose penalties. The Worker, Retiree and Employer Recovery Act of 2008, waives the required minimum distribution for IRA owners 70 1/2 or older in 2009.
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