Traditional IRAs

Aspire FCU offers many IRA products to enhance your retirement plan. You may choose from Traditional and Roth IRAs, Coverdell Education Savings Accounts, as well as, an Advantage Accumulation IRA, which utilizes the convenience of Direct Deposit to build up your savings automatically. Most important, your funds are safe at your Credit Union. Effective October 3, 2008, the NCUA increased share insurance limits to $250,000 for all accounts, including retirement accounts.

You will find a comprehensive description of IRA plans and regulations below; please consult your tax advisor for guidance.  Contributions may be fully or partially tax deductible or non-deductible.  Please consult your tax advisor for your specific tax advantages.

• Dividends are tax-deferred until distribution. No penalties on withdrawals if taxpayer is: 1) Age 59 1/2, 2) Buying a first home ($10,000 lifetime maximum), 3) Paying for college expenses or 4) Disabled or deceased.
• Contributions can me made at any time until April 15th of the following year
• Withdrawals of contributions and earnings are subject to 10% penalty unless taxpayer is: 1) Age 59 ½, 2) Buying a first home ($10,000 lifetime maximum), 3) Paying for college expenses or 4) Disabled or deceased.
• 2009 and 2010 tax years: Contribute up to $5,000 per individual annually ($6,000 if age 50 or over) or 100 percent of your earned income, whichever is less provided that income from compensation is equal to or greater than the IRA contribution.
  Spousal Contributions: The maximum contribution amount can also be made to a nonworking spouse's IRA—subject to certain requirements.
  Note: The maximum contribution amount can be deposited into a Traditional IRA, a Roth IRA or split between the two.
• The deductibility of your contribution varies depending on your Modified Adjusted Gross Income (MAGI) and whether you have a retirement plan at work.
  If you are covered by a retirement plan at work:
  2010 tax year: Fully deductible if MAGI is less than $56,000 (single) or $89,000 (joint); partially deductible if MAGI is between $56,000 and $66,000 (single) or $89,000 and $109,000 (joint). No deduction if MAGI is over $66,000 (single) or $109,000 (joint).
  If either you or your spouse is covered by a retirement plan at work (but not both): 2010 tax year: Fully deductible if your MAGI is less than $167,000; partially deductible if MAGI is between $167,000 and $177,000; not deductible if MAGI is over $177,000.
  Neither spouse participates in a qualified plan: Contributions are deductible.

Maximum Annual Contribution Amounts

	Year	Under Age 50	Over Age 50
	2007	$4,000	$5,000
	2008	$5,000	$6,000
	2009	$5,000	$6,000
	2010	$5,000	$6,000

Convert a Traditional IRA to a Roth IRA

The 2010 rule eliminates all eligibility requirements for IRA conversions, which means that anyone may move all or a portion of their traditional IRA assets to Roth IRAs by conversion. The balance converted is normally taxable for the tax year in which the transfer occurs. However, the law provides a special tax rule for 2010 conversions. You have the option to pay the entire tax in 2010, or spread the taxation over 2011 and 2012.

Please consult with your tax advisor to decide which product will work best for your financial situation.

Roth IRAs

Aspire FCU offers many IRA products to enhance your retirement plan. You may choose from Traditional and Roth IRAs, Coverdell Education Savings Accounts, as well as, an Advantage Accumulation IRA, which utilizes the convenience of Direct Deposit to build up your savings automatically. Most important, your funds are safe at your Credit Union. Effective October 3, 2008, the NCUA increased share insurance limits to $250,000 for all accounts, including retirement accounts.

You will find a comprehensive description of IRA plans and regulations below; please consult your tax advisor for guidance.  Contributions may be fully or partially tax deductible or non-deductible.  Please consult your tax advisor for your specific tax advantages.

• Dividends are tax-free upon distribution
• Contributions cannot be tax deductions
• Contributions may be withdrawn tax-free at any time. Earnings may be withdrawn tax-free if account has been open 5 years and taxpayer is: 1) Age 59 1/2, 2) Buying a first home ($10,000 lifetime maximum) or 3) Disabled or deceased. Contributions from conversion IRAs must remain on deposit for 5 years to avoid withdrawal penalty.
• Contributions can me made at any time until April 15th of the following year
• For 2010 tax year, maximum yearly contribution phased out between MAGI of $105,000 and $120,000 (single) and $167,000 and $177,000 (joint).
• Withdrawals of earnings are subject to taxes and a 10% penalty unless taxpayer is: 1) Age 59 ½, 2) Buying a first home or 3) Disabled or deceased. Withdrawals of earnings for college expenses will be subject to taxes but not penalties.
• Withdrawals must begin at age 70 ½.
• 2009 and 2010 tax years: Contribute up to $5,000 per individual annually ($6,000 if age 50 or over) or 100 percent of your earned income, whichever is less provided that income from compensation is equal to or greater than the IRA contribution.
  Spousal Contributions: The maximum contribution amount can also be made to a nonworking spouse's IRA—subject to certain requirements.
  Note: The maximum contribution amount can be deposited into a Traditional IRA, a Roth IRA or split between the two.

Maximum Annual Contribution Amounts

	Year	Under Age 50	Over Age 50
	2007	$4,000	$5,000
	2008	$5,000	$6,000
	2009	$5,000	$6,000
	2010	$5,000	$6,000

Maximum Income Requirements to Contribute to Roth IRA’s

	Filer Type	Full Contribution - if your adjusted gross income is less than:	Partial Contribution - if your adjusted gross income is between:
	Single Filer	$95,000	$95,000 to $110,000 (no contribution if over $110,000)
	Married filing jointly	$150,000	$150,000 to $160,000 (no contribution if over $160,000)
	After 2008, the contribution limit will be adjusted annually for inflation in $500 increments

Advantage Accumulation IRAs

Aspire FCU offers many IRA products to enhance your retirement plan. You may choose from Traditional and Roth IRAs, Coverdell Education Savings Accounts, as well as, an Advantage Accumulation IRA, which utilizes the convenience of Direct Deposit to build up your savings automatically. Most important, your funds are safe at your Credit Union. Effective October 3, 2008, the NCUA increased share insurance limits to $250,000 for all accounts, including retirement accounts.

You will find a comprehensive description of IRA plans and regulations below; please consult your tax advisor for guidance.  Contributions may be fully or partially tax deductible or non-deductible.  Please consult your tax advisor for your specific tax advantages.

This IRA is perfect for individuals that find it easier to make a number of smaller contributions over a longer period of time. The Advantage Accumulation IRA can be classified as Traditional or Roth. Once it is classified, you will be able to enjoy all the features and restrictions of that particular type of IRA.

• Open an account with as little as $5
• No set term
• Earn competitive, variable dividend rates
• Make automatic deposits through direct deposit

Coverdell Educational Savings Account - Educational IRA

Aspire FCU offers many IRA products to enhance your retirement plan. You may choose from Traditional and Roth IRAs, Coverdell Education Savings Accounts, as well as, an Advantage Accumulation IRA, which utilizes the convenience of Direct Deposit to build up your savings automatically. Most important, your funds are safe at your Credit Union. Effective October 3, 2008, the NCUA increased share insurance limits to $250,000 for all accounts, including retirement accounts.

You will find a comprehensive description of IRA plans and regulations below; please consult your tax advisor for guidance.  Contributions may be fully or partially tax deductible or non-deductible.  Please consult your tax advisor for your specific tax advantages.

This Educational IRA is ideal for those individuals looking to save for the educational costs of a named beneficiary.

• Open an account with as little as $500
• Available terms: 3 months to 60 months
• Tiered dividend levels and rates
• Distributions are generally tax free if used for these types of expenses:
• Expenses incurred in connection with the enrollment or attendance of the beneficiary at a public, private or religious elementary or secondary school
• Post-secondary tuition, fees, textbooks, supplies and equipment
• Post-secondary room and board expense - only if the beneficiary is enrolled on at least a half-time basis at an eligible institution
• Contributions can be made at any time during a calendar year
• Contribute up to $2,000 annually for each beneficiary up to their age 18.

Maximum Income Requirements to Contribute in Coverdell Educational Savings Accounts

	Filer Type	Full Contribution - if your adjusted gross income is less than:	Partial Contribution - if your adjusted gross income is between:
	Single Filer	$95,000	$95,000 to $110,000 (no contribution if over $110,000)
	Married filing jointly	$190,000	$190,000 to $220,000 (no contribution if over $220,000)