Traditional IRA
Atlanta Teachers FCU offers a share savings IRA that pays the
same quarterly interest rate as share savings
accounts. Six month up to 36 month certificates
are also available. A minimum of $500.00 is required
to set up a share certificate.
Individual retirement accounts are a smart way
to save for the future. A traditional IRA can
be opened and funded without any employer participation.
Contributions and/or earnings are tax-deferred
until retirement. Unlike many employer plans,
money in the account is always accessible; however,
until age 59 1/2 there is a 10 percent early distribution
penalty unless you qualify for an exemption due
to one of the following: disability, qualifying
education expenses, unemployment, qualifying first-home
purchases, death, or receipt of your IRA assets
in equal payments over your life expectancy.
Members under age 70 1/2 may contribute to an
IRA at a maximum of $3,000 per year for tax years
2002 - 2004.
For more information on a traditional IRA please
contact the Member Services Department at the
nearest branch office. Click
here for branch office phone numbers. To view
current rates click
here or click
here for the retirement claculator.
Roth IRA
Roth IRAs differ from Traditional IRAs in that
the money you contribute to a Roth IRA has already
been taxed. So the principal amount is never subject
to taxes or penalties in the future, as long as
you stay within the contribution guidelines. This
retirement plan allows the money you contribute
to grow tax-deferred.
If you do not withdraw any of the earnings until
you have had the plan for at least five years,
or satisfy one of the qualifying events, those
tax-deferred earnings become tax-free. Unlike
the traditional IRA, there is no 70 1/2 age limit
on making contributions. You simply need to have
earned income equal to the amount you contribute
up to a maximum of $3,000 per year for tax years
2002 - 2004.
Click here
for current rates or click
here for the retirement claculator.
* The Credit Union provides no legal advice to
members, and provides the foregoing information
from a reliable resource to give our members a
basic understanding of these services. You should
consult with your tax or legal adviser regarding
any particular and the current status of applicable
federal and state laws. |
