Save
Automatically
The automatic IRA savings plan is a simple, effective, and
effortless way to build your IRA account. Arrange for your IRA
contributions to be automatically withdrawn from a Travis Credit
Union savings or checking account. Decide on an amount you'd like to
contribute and choose from three monthly dates. Contributions made
by automatic payment are posted for the current tax year only.
Traditional IRAs
If you are under age 70.5, you may be eligible to contribute up to
$5,000 each year to a Traditional IRA. You can open an IRA savings
account or an IRA certificate for a term you specify. There are no
set-up or maintenance fees. Contributions may be tax-deductible,
depending on your income. Earnings are tax-deferred until funds are
withdrawn, when they are taxed as income for that year. Dividends
compound monthly and are credited to the account the first day of
the following month.
Roth IRAs
Your income determines eligibility for opening a Roth IRA, which
allows taxable contributions up to $5,000 each year. You can open a
Roth IRA savings account or a Roth IRA certificate for a term you
specify. The benefit of a Roth IRA is that qualified withdrawals of
earnings are not taxed. There are no set-up or maintenance fees.
Dividends compound monthly and are credited to the account the first
day of the following month.
Catch-up Contributions
Individuals who have reached the age of 50 before the close of the
taxable year are allowed to contribute an additional amount,
allowing them to catch-up on their retirement savings. The following
chart shows the new catch-up contribution limits for Traditional and
Roth IRAs when added to the annual contribution limit.
Click here for the Catch-up Contributions Chart
Simplified Employee Pension IRA Savings Account (SEP
IRA)
Your employer can contribute to this retirement benefit that
generally earns a higher rate of return on a minimum deposit of
$200. Contributions are tax-deductible for employers but not for
employees; however, earnings are tax-deferred for the account holder
until withdrawn. Dividends compound monthly and are credited to the
account the first day of the following month.
How much can I contribute to a SEP IRA?
For 2007, An
employer's SEP Plan contributions cannot exceed the lesser of 25% of
an eligible employee's compensation, or $45,000 of the first
$225,000 of compensation.
For 2008, the contribution limits are the lesser of 25% of an
eligible employee's compensation or $46,000 of the first $230,000 of
compensation. These contribution
amounts are subject to Cost-of-Living-Adjustments (COLAS).
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