Individual Retirement Accounts (IRAs)
With a GLCU traditional IRA, you can earn tax-deferred dividends on the savings that you will need for a secure retirement. Your high dividend earnings are tax-deferred until you begin making withdrawals - normally after you retire and are in what may be a lower tax bracket. Members, filing singly, may also receive an immediate tax deduction of up to $5,000 with a traditional IRA. Married members, filing jointly, may be able to deduct up to $10,000. Roth IRAs and Coverdell (formerly Education) IRAs are also available through GLCU.
Newer tax laws offer opportunities to set aside more funds for your retirement years through higher limits on all three types of IRAs. So it may be a good time to review how much you want to invest yearly.
The following chart outlines how contributions gradually rise through year 2008.
| YEAR |
LIMIT |
50 AND OLDER |
| 2006-2007 |
$4,000 |
$5,000 |
| 2008 |
$5,000 |
$6,000 |
| 2009 |
$5,000 |
$6,000 |
“Catch Up” Contributions: If you are 50 years of age or older, the column on the right shows your maximum yearly contribution amounts are higher.
And if you are changing employers or retiring and have a Qualified Retirement Plan, you can avoid any penalties by directly transferring your funds to a GLCU IRA. (Check with a tax specialist for details on deductions, penalties and age or income restrictions.) If you don’t already have a GLCU IRA account, it would be a good time to open one!
We have two types of retirement investment options and all are federally insured:
IRA Savings
With an IRA Savings account, all you need is $50 to open and begin earning daily dividends, paid monthly. This option lets you build your savings for retirement over time by making deposits through payroll deduction, mail, phone, computer or in person.
IRA Money Market Account
The IRA Money Market Account is great as a temporary place for accumulating IRA funds prior to placement in higher-yielding term IRA Certificates, transfer to another IRA custodian, or in anticipation of mandatory annual IRA distributions.
You get the flexibility, higher interest rates and the safety of principal you need. You have immediate access to move your IRA funds into a IRA CD or other IRA custodian account with no bank-imposed withdrawal penalties.
Earn higher yields based on a tiered rate. The larger the balance, the higher the interest rate.
IRA Certificates
With an IRA Certificate, you can lock in the great rates of a Certificate with the benefits of an IRA. A minimum balance of $500 is required to open an IRA Certificate for a term of one to five years. You receive the high yields, paid monthly, while your earnings are tax-deferred like an IRA, until you begin making withdrawals.
- Certificate Rates
- Important Account Information
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