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Individual
Retirement Account (IRA)
An Individual Retirement Account (IRA) is a savings
account specifically designed to provide additional income for member's
retirement years. IRAs are one of the easiest and safest methods
to ensure financial stability during retirement years. Contributions
to Traditional IRAs may also reduce the amount of taxes you pay
depending on your income level and/or other retirement accounts
that you may have. We advise that you check with your tax consultant
regarding your allowed deductible amount.
FCCU IRA's require a minimum of $100 to open ($1,000
required to open an IRA CD). Dividends are compounded daily and
paid quarterly. Detailed statements are mailed quarterly. Traditional
IRA withdrawals are permitted at age 59 1/2 without IRS tax penalties.
When investing in an IRA you may deposit up to $4,000 per year or
100% of your earned income, whichever is less. If you have reached
age 50 you can contribute an additional $1000 as a catch up contribution.
Types of IRAs
The Individual Retirement Account underwent a major
makeover in 1997. You can now make more contributions and more of
that will be tax deductible. For example, beginning with tax year
1998 a married couple can take a full deduction if their income
is less than $50,000. Since 1998 the income limits have continued
to edge upward. The maximum annual regular IRA contribution is $4,000
but under new spousal rules, a non-working spouse can now contribute
up to $4,000. This allows a married couple to contribute a total
of $8,000 annually to their IRAs. Individuals age 50 or older may
begin making "catch up" contributions. This special exemption
allows an additional $1,000 for tax years 2006 and beyond.
Coverdell Education IRA
The Coverdell Education IRA allows you to save
for any post-secondary education by investing up to $2,000 per year
for each child under the age of 18. Though the contribution is not
tax deductible, the benefit comes when you remove the money. If
it is used for qualified education expenses - you pay no taxes on
it.
Roth IRA
The Roth IRA allows you to withdraw the earnings
with no IRS penalties if it has remained in the account for at least
five years. You may withdraw your contributions at any time without
an IRS penalty. Unlike a traditional vs. regular IRA which requires
that you begin withdrawing money at age 70 1/2, a Roth IRA has no
such requirement. You can let the money sit while earnings grow
tax-free for as long as you like. With more flexibility and more
options to choose from, there is no reason to wait. Stop in today
or contact our Call Center at 281.856.5300 or toll free at 800.456.3228
for more details.
Certificates of Deposit
Certificates
of Deposit (CD) from First Community provide members with the
opportunity to lock in a fixed rate of return for a specified length
of time. With CDs you are guaranteed the competitive interest rate
for the full term of the CD.
First Community's Certificates
of Deposit offer a low minimum opening requirements beginning
at $1,000 and terms ranging from 3 months to five years. Early withdrawal
penalties may apply.
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