Not familiar with the term? An IRA is short for Individual Retirement Account.

At Unitus, we offer Traditional IRA's, Roth IRAs and Educational IRAs with no set-up or administration fee.

Traditional IRA
With significant up-front tax advantages and less money taken out for taxes, this IRA gives you the power of compounded earnings.

  • Earnings accumulate tax-deferred.
  • Contributions are tax deductible (if you qualify).
  • Contribution amount increases.

You can contribute to a traditional IRA if you earn compensation and won't reach age 70 ½ by year's end. If you are 50 or younger, you can contribute up to $4,000 annually (through 2007). If you are 50 or older, your limits increase to $4,500 for 2005 and to $5,000 for 2006 and 2007.

If you file a joint tax return, you can treat your spouse's compensation as your own (combined contributions must not exceed your combined compensation). All earnings in a traditional IRA are not taxed until they are withdrawn.

For more information about traditional IRAs, please call us or visit one of our branches.

Roth IRA
Unlike traditional IRAs, contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA can be withdrawn tax-free, including earnings.

  • Contributions are allowed at any age.
  • Qualified distributions are tax-free.
  • Flexible withdrawal options are available.
  • Contribution amount increases.

A single filer with modified adjusted gross income of less than $95,000 can make the full Roth IRA contribution for that year. Each spouse filing a joint tax return with modified adjusted gross income of less than $150,000 can also make the full Roth IRA contribution for that year. Some people with higher modified adjusted gross incomes may be able to make smaller contributions.

If you are 50 or younger, you can contribute up to $4,000 annually for 2005 through 2007. If you are 50 or older, your limits increase to $4,500 for 2005 and $5,000 for 2006 and 2007. If your income is too high to make a full contribution, a smaller contribution can be made if your modified adjusted gross income is between $95,000 and $110,000 for single filers and between $150,000 and $160,000 for joint filers.

For more information about Roth IRAs, call us or stop by one of our branches.

Educational IRA (also known as Coverdell Education Savings Accounts)
An education IRA's sole purpose is to help you pay for your child's education expenses like tuition, fees, books, supplies and equipment.

  • Anyone meeting the income requirements can open and contribute to a child's account, including grandparents, aunts, uncles and family friends.
  • Earnings grow tax-free if distributions are used for qualified education expenses.
  • Can be used for qualified elementary and high school expenses at most public, private and parochial schools.
  • You can save up to $2,000 per child per year!

You can contribute the full amount if you are a single filer with modified adjusted gross income of less than $95,000. Joint filers can contribute the full amount if modified adjusted gross income is less than $150,000. If your income is too high to make a full contribution, a smaller contribution can be made if your modified adjusted gross income is between $95,000 and $110,000 for single filers and between $190,000 and $220,000 for joint filers.

For more information about an education IRA, call or visit one of our branches.

Seriously thinking about that IRA?
If you're ready to start your IRA, it's worth noting that any of our savings accounts or CD's can be used as an IRA deposits. All we need is $25. And to help you sleep a little more easily at night, IRA accounts at Unitus are federally insured up to $250,000.

Contact us today to get the IRA of your choice off the ground. And while you're at it, ask us about payroll deduction so you can make an automatic IRA deposit each payday.

Every cent you put into your Unitus IRA will bring you that much closer to achieving your retirement and saving dreams.

Please note: Unitus Community Credit Union does not provide tax advice, and nothing in this section should be construed as tax advice. Before acting on this information, consult your own accountant or tax advisor.