The Southern Federal Credit Union

IRAs

Share Savings Account Deposit Main Page Checking Accounts Money Market Savings Accounts Term Share Certificates IRAs Club Accounts Convenience Services	IRAs (Individual Retirement Arrangement) Share Rates \| Calculator \| Ask a Question Looking for a sound means of securing the financial future? Members of The Southern Federal Credit Union should consider an Individual Retirement Arrangement (IRAs). IRAs are a critical part of our members' savings plans because they help build a solid foundation of life - whether used for retirement or a first home. IRAs also provide great tax benefits along the way to achieving the goals it helps members fulfill. *Traditional IRA* A Traditional IRA allows individuals under the age of 70 1/2 with earned income to make a contribution of up to $4,500 per year, which may be tax-deductible (consult with your tax advisor). The amount of the contribution may be withdrawn penalty-free for certain qualified higher education expenses, first-time home purchase, at the age of 59 1/2, or for qualified medical expenses. Traditional IRA contributions are fully deductible from current taxes for: Individuals not covered under an employer-sponsored retirement plan. Single taxpayers with a modified adjusted gross income of $45,000 or less; with a partial deduction allowed up to $55,000. Married taxpayers filing jointly with a modified adjusted gross income of $65,000 or less; with a partial deduction allowed up to $75,000. *Roth IRA* A Roth IRA allows individuals with earned income to make a contribution of up to $4,500 per year (consult your tax advisor). Unlike the traditional IRA, contributions may be made to a Roth IRA after the individual reaches the age of 70 1/2. Distributions are generally tax-free. Contributions may be withdrawn, at any time, tax-free and IRS penalty-free. Distributions of earnings are also tax-free and penalty-free if the individual has participated in a ROTH IRA for at least five years, and the distribution is used to buy a first home or received after age 59½. ROTH IRA contributions are fully allowable for: Single taxpayers with a modified adjusted gross income less than $95,000; with a partially allowable contribution with a modified adjusted gross income up to $110,000. Married taxpayers filing jointly with a modified adjusted gross income less than $150,000; with a partially allowable contribution with a modified adjusted gross income up to $160,000. Deposit Main Page \| Checking Accounts \| Term Share Certificates \| IRAs \| Club Accounts Convenience Services \| Share Savings Account