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Which types of IRAs are available at Media Members FCU? |
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Traditional, Roth and Education (now known as the Coverdell Education Savings Account) IRAs are available. |
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What types of rates are paid on IRA accounts? |
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Traditionally, IRA rates are higher than regular savings rates. Please call our office for specific rate information. |
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Who can contribute to a Traditional IRA? |
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Anyone under age 70 1/2 who has income from compensation (or who is filing jointly with a spouse who earns compensation) can contribute to a Traditional IRA. |
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Who can contribute to a Roth IRA? |
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Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation) with the modified adjusted gross income (MAGI) of up to $95,000 (single filers) or $150,000 (joint filers). |
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Who can contribute to a Coverdell
Education Savings Account? |
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Anyone who has MAGI of up to $95,000 (single filers) or $190,000 (joint filers). Contributions are not allowed after the beneficiary reaches age 18 (except in certain cases). |
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Are there tax benefits to contributing to an IRA? |
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Yes, we ask that you consult your tax adviser for information about tax benefits associated with IRAs. |
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How much can I contribute to an IRA? |
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Traditional and Roth: $3,000 per year through 2004 (higher limit if age 50 or older). Contributions may not exceed compensation. Although an individual may have a Traditional and a Roth IRA, contributions made to one reduce the amount that may be made to the other.
Coverdell Education Savings Account: $2,000 per child, per year. |
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What are "catch-up" contributions? |
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"Catch-up" contributions help members closer to retirement catch up on savings. You must be at least 50 years old and meet the eligibility requirements for the specific type of IRA you are contributing to. For tax years 2002-2005, you can put an extra $500 into your Traditional or Roth IRA above the regular contribution limit. For tax year 2006 and on, the catch-up contribution increases to $1,000 above the regular contribution limit. |
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What is the yearly contribution deadline for IRAs? |
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You have until April 15th of each year to contribute to an IRA for the previous tax year. |
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Are retired members allowed to contribute to IRAs? |
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Only members with earned income may contribute to IRAs. |
Not intended as tax advice. Consult your tax adviser.
