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Roth and Traditional Individual Retirement Accounts
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Two great choices for retirement
A Traditional IRA lets you deposit pre-tax income and save.* After you retire, you pay taxes as you withdraw your savings. Choose from a variable-rate IRA savings account or a fixed-rate IRA Certificate of Deposit with terms from six months to 60 months.
A Roth IRA lets you deposit post-tax income now, but withdraw funds later when you need them. In some cases, the withdrawal may be tax-free.* Choose from a variable rate IRA savings account or a fixed-rate IRA Certificate of Deposit with terms from six months to 60 months.
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TRADITIONAL IRA |
ROTH IRA |
Age Eligibility |
Under 70 ½ at year end |
None |
| Maximum Contributions (annually)** |
$5,000;
$6,000 for those over 50 |
$5,000;
$6,000 for those over 50 |
| Income Limitations |
None |
Single - less than $110,000 Married Filing Jointly - less than $160,000 |
| Contribution Due Date |
April 15 of the next calendar year |
April 15 of the next calendar year |
| Distributions |
Must begin by April 1 of the year after participant reaches age 70 ½ |
No mandatory disbursements |
| Tax Implications* |
Tax deferred earning. Contributions may be tax deductible.* |
Tax free earnings at retirement. Contributions are made with post-tax dollars. Tax-free distributions.* |
Additional account details may apply.
*See your tax advisor for information on possible tax deductions.
**Maximum Contributions listed are for the 2008 tax year.
Which should you choose?
A Traditional IRA is a good choice if:
- Your income is too high for a Roth IRA
- You need to rollover assets from an employer sponsored plan
- You expect to be in a lower tax bracket when withdrawals begin
A Roth IRA is a good choice if:
- You anticipate being in a higher tax bracket when you retire
- You don't get a tax deduction for a Traditional IRA contribution
- You want to take distributions, but don't want to wait until you are age 59 ½ (Contributions may be withdrawn tax-free and penalty-free)
For more information contact:
Member Services
M-F 7:00 a.m. - 7:00 p.m.
503.228.7077
800.527.3932
info@onpointcu.com
visit your nearest branch.
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