Our Individual Retirement Accounts (IRAs) are a safe and profitable way to save for retirement. With an IRA at IUAW Federal Credit Union, your retirement saving will earn a competitive rate of return.
IRAs are an excellent way to save for retirement because taxes on account earnings are deferred until after the account is drawn on, at which time you will most likely be in a lower tax bracket. Because taxes do not drain the earnings on the account, IRAs grow much more rapidly than other types of interest-bearing accounts.
NEW IRA GUIDELINES ALLOW HIGHER CONTRIBUTIONS
The new maximum contribution limits for the Traditional IRA and Roth IRA are as follows:
Taxable Year 2002 - $3,000 Taxable Year 2006 - $4,000
Taxable Year 2003 - $3,000 Taxable Year 2007 - $4,000
Taxable Year 2004 - $3,000 Taxable Year 2008 - $5,000
Taxable Year 2005 - $4,000
IRA owners that are 50 years or older can contribute even more money to their Traditional or Roth IRAs in the form of “Catch-up Contributions”. The Traditional IRA and Roth IRA Catch-up Contribution limits are as follows:
Taxable Year 2002 - $3,500 Taxable Year 2006 - $5,000
Taxable Year 2003 - $3,500 Taxable Year 2007 - $5,000
Taxable Year 2004 - $3,500 Taxable Year 2008 - $6,000
Taxable Year 2005 - $4,500
The Educational IRA’s new contribution limit is being raised from $500 to $2,000.
See your tax advisor to find out if you qualify for any of the above tax-deductible contributions.
Rate Information:
Your dividend rate may change quarterly as declared by the Board of Directors.
Compounding and crediting –Dividends will be compounded quarterly. Dividends will be credited to your account quarterly.
Dividend period –The dividend period is quarterly, for example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is March 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the last day of the period, and for the example above is March 31.
If you close your account before dividends are paid, you will not receive the accrued dividends.
Daily balance computation method – Dividends are calculated by the daily method, which applies a daily periodic rate to the balance in the account each day.
Accrual of dividends on non-cash deposits – Dividends will begin to accrue on the first business day after the banking day you place non-cash items to your account.
Minimum balance requirements:
The minimum balance required to open this account is $5.00.
You must maintain a minimum daily balance of $5.00 in your account each day to obtain the disclosed annual percentage yield.
Transaction limitations:
During any statement period, you may not make more than six withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer or telephonic order or instruction. No more than three of the six transfers may be made by check, draft, debit card (if applicable), or similar order to a third party. If you exceed the transfer limitations set forth above in any statement period, your account will be subject to credit union review and possible closure.
IRA's
