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Telephone: 410.368.3125

Individual Retirement Accounts (IRAs)

IRAs are a great complement to your current retirement plan, such as a 410K or pension plan. You are eligible to contribute to an Individual Retirement Account if you have earned income.

• Dividends are either tax deferred or non-taxed depending of the type of IRA you open and your income.
• We offer an IRA Share Account that allows payroll deduction into the account. This is a type of account allows you to accumulate the funds needed to purchase an IRA Share Certificate. There is no minimum balance required on this account. The minimum payroll deduction for this account is $5.
• An IRA Share Certificate Account requires a minimum balance of $500 with terms of 12 or 30 months.
• Direct rollovers from qualified retirement plans are allowed into an IRA.

Contribution limits have increased in recent years. For tax years 2005 through 2007 is $4,000 per year. In 2008, that limit will increase ot $5,000 per year. If you’re 50 or older, you can contribute even more: an additional $500 a year through 2005 and another $1,000 each year thereafter.

Traditional IRAs

In some cases deposits to this account may be tax deductible. There are no minimum balances required to open an IRA Savings**; however, you must have earned income to qualify*. Whether you are planning your golden years or saving for your first home, an IRA Savings from St. Agnes Employees FCU is the smart way to save for your future. Our Traditional IRA has federal tax advantages that will help you accumulate your money faster. (Consult your tax advisor for federal tax benefits.)

• Both savings and certificates accounts are available
• Earnings tax deferred until withdrawn*
• May be used for first time home purchase or education*
• Catch up contributions may be made for certain individuals*

To open your IRA, please contact us.

Roth IRAs

The Roth IRA** offers a non-deductible contribution but gives you the ability to invest your after-tax dollars today, let the investment grow tax-free, and withdraw your principal and earnings tax-free after five years and reaching age 59 1/2. (Disbursements outside of the five year/age 59 1/2 rule may result in tax and/or penalties on any earnings withdrawn.) You simply need to have earned income equal to the amount you contribute up to a maximum amount set each year. Dividend compounding can help your investment grow substantially.

• Both savings and certificates accounts are available
• Funds can be used for higher education, penalty-free*
• Contributions in a Roth IRA have already been taxed
• There is no 70 1/2 age limit on making contributions

Coverdell Education Savings Accounts

This type of IRA lets you save for a child’s college expenses now. A contribution of up to $2000 per year may be made. Earnings are tax-free if used for higher education purposes for the beneficiary.

Share Insurance

All share accounts are insured by the National Credit Union Administration (NCUA), an agency of the U.S. Government, up to $100,000. Individual Retirement Accounts are insured separately up to $250,000.

*Please consult your tax advisor who can evaluate your individual situation with regard to IRAs.