MCU IRA Accounts:
Helping You Save For Retirement

Not only is January 2011 the beginning of a new year, it also marks another year closer to your retirement. No matter how close or far away you are from retiring, establishing a retirement savings now can make a big difference for your income once you retire. An MCU IRA is a great way to build a retirement savings, or to supplement a pension plan or 401K. IRAs are personal retirement savings plans available to anyone who receives taxable compensation during the year, and can make a big difference in having a comfortable amount of savings built up for retirement.

MCU offers two high-yield IRA accounts for members:

Traditional IRA: Tax deferred earning and immediate tax deductions based . on qualifying income level

Roth IRA: Tax-free withdrawals on money and earnings after qualifying period.

Below is some more in-depth information on Traditional and Roth IRAs to help you decide which savings product is right for you.

  Traditional IRA Roth IRA
Benefits Earnings grow tax-deferred until withdrawn. When withdrawn, funds are taxed at your current rate.

Earnings are tax free if withdrawn after age 59½ when account has been open for 5 years or more.

Contributions (not earnings) can be withdrawn tax and penalty free at anytime.
Eligibility

Anyone with earned income who is under age 70½ in the contribution year, regardless of income level.

Any age as long as your adjusted gross income does not exceed the following levels in 2010:

Single tax filers: $122,000

Joint tax filers: $179,000
Contribution Limit for 2010 Tax Year

If you are under age 50, you can contribute up to $5,000.

If you are over age 50, you can contribute an additional $1,000, totaling $6,000.

If you are under age 50, you can contribute up to $5,000.

If you are over age 50, you can contribute an additional $1,000, totaling $6,000.
Tax Deductible Contributions?

It depends on your income, and whether you are enrolled in an additional retirement plan.

No, your contribution is not tax deductible; however, qualified withdrawals are tax-free.

Age Limit for Contributions?

YES. The Age Limit to contribute is age 70½

NO. There is no Age Limit for contributions.

Are Rollovers and Transfers Permitted?

YES

YES

So, which IRA is right for you? The right IRA for you is dependent on either your need for tax-deductible contributions today (Traditional IRA) or tax-free earnings in the future (Roth IRA). IRA Certificates at MCU offer you the flexibility to choose terms up to 36 months with just a $500 minimum opening deposit. We also offer an 18-Month Variable CD with a minimum opening deposit of $100. Remember, the deadline to invest in an IRA for the 2010 tax year is April 15th, 2011, so visit your local branch to learn more about MCU IRAs today!