Members Choice WV Federal Credit Union IRA's...
Members Choice WV offers its Members three options in Individual Retirement Accounts as an excellent tool to save for retirement. Depending on the type of IRA you choose, contributions may be tax deductible and will grow either tax-deferred or tax-free. Recent tax law changes have also made IRA's even better. Dividends are paid and posted quarterly. We also offer Share Certificates for your IRA account. The following will highlight the three IRA's we offer.
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Traditional IRA- Annual contribution limits have increased from $2,000 to $3,000 in 2002 and will gradually increase to $5,000 in 2008. Contributions are fully tax deductible if you are not an active participant in an employer retirement plan. Otherwise, phase-out rules apply. Investments grow on a tax-deferred basis. Earnings are taxed only upon withdrawal.
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Roth IRA- As long as you have earned income, you can establish and contribute to a Roth IRA, even after age 70.5. By converting your traditional IRA to a Roth IRA, you can enjoy tax-free withdrawals. However, the amount you convert is subject to income tax now.
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Education Savings Account (ESA)- This account in an excellent way to help a child, grandchild or other young children start saving for an educational purposes. Your ESA can be used to pay qualified elementary school and secondary school expenses as well as those for higher education. Even though there is no tax deduction for amounts contributed to an ESA, earnings grow tax-free. In 2002, the annual contribution amount was increased from $500 per beneficiary to $2,000 per beneficiary.
*If you have any IRA questions, please stop in and ask.
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