Individual Retirement Accounts (IRAs)

Individual Retirement Accounts are the solutions found by many HFCU members when they are looking for a long-term personal retirement savings program. Recently, changes in the IRA market have continued to make IRAs more attractive to investors. The annual limit for both traditional and Roth IRA contributions is $4,000 for the 2007 tax-year. The limit increased to $5,000 in 2008.

If you are 50 or older, you can contribute up to an additional $1000 annually as a "catch-up" contribution. Married couples may be able to contribute up to double the individual IRA maximum. You should consult a tax professional regarding eligibility requirements. Remember, there is a substantial penalty for early withdrawal except in certain circumstances.

HFCU IRAs:

Feature a variety of competitive rates and maturity options, even from 6-60 months with IRA Certificates or IRA Share Accounts. IRA accounts are insured separately from other Share Accounts by NCUA for up to $250,000. Contributions may be made until April 15 of each year for previous year. (Deposits only) IRAs from other institutions may be transferred or rolled over into an HFCU IRA. Plus, funds from a qualified pension, profit-sharing, 401(k), and SEP may be rolled over to an HFCU IRA.

IRA Summaries:

Traditional IRAs Available to anyone under the age of 70½. Contribution maximum is currently $4,000 per year, or $5,000 per year if you are 50 years of age or older. Roth IRAs Withdrawals are tax-free if account has been open for at least 5 years and you are either over the age of 59½, disabled, or buying a first home. Married couples filing a joint return with modified adjusted gross income (MAGI) less than $150,000 and single filers with MAGI less than $95,000 can make full contributions. Those with higher incomes may qualify for reduced contributions. Coverdell Education Savings Accounts Couples who file a joint tax return and have MAGI of $150,000 or less and single filers with MAGI of $95,000 or less can make contributions. Those with higher incomes may qualify for reduced contributions. Contributions can not exceed $2000 per child per year. Withdrawals for qualified higher-education expenses are tax-free.