Synergy FCU | IRA Synergy Federal Credit Union

Individual Retirement Accounts

One of the greatest challenges facing workers is assuring their financial security in retirement. An Individual Retirement Account (IRA) can assist you in saving for your future. Synergy FCU offers both Traditional and Roth IRAs.

Traditional IRAs

Traditional IRAs offer:

independence, and can be opened and funded without any employer participation
immediate tax benefits, with contributions and/or earnings tax-deferred until retirement
accessibility, with assets always available
flexibility, because there is no minimum contribution in any year, and you choose your own investments investments

You can contribute to an traditional IRA if:

you are under age 70 1/2, and
you have earned income from employment

You can contribute up to:

a maximum of $5,000 (for 2010), and
a catch-up contribution of $1,000 if you are age 50 and older

Roth IRAs

Unlike any other type of IRAs, your Roth IRA can provide you with tax-free income during your retirement. Contributions to Roth IRAs are after-tax dollars; you cannot take a deduction from a Roth contribution. But distributions, with potentially may include significant amounts of earnings, are tax-free if you follow certain requirements.

Two factors that make this possible

First, the money you contribute to a Roth IRA has already been taxed. Therefore the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines.
Second, this retirement savings vehicles allows the money you contribute to grow tax-deferred. If you do not withdraw any of the earnings until you have had a Roth IRA for at least five years, and you satisfy one of four qualifying events, those tax-deferred earnings become tax-free.

Who is eligible?
Unlike the Traditional IRA, there is no 70 1/2 age limit on making contributions. You must, however, have earned income equal to the amount you contribute, and your modified adjusted gross income (MAGI) must be below a certain amount.

If I am eligible, how much can I contribute?
The maximum contribution is $5,000 for 2010 ($5,000 for 2009). In addition, if you reach age 50 or older by the close of a taxable year, you also may make a catch-up contribution up to $1,000. However, there are income thresholds that may reduce the amount you can contribute.

IRAs at SFCU
IRAs at Synergy FCU are insured up to $250,000 by the NCUA and up to an additional $250,000 by Excess Share Insurance.

IRAs can be started with as little as $25. To open your IRA, call a Member Service Representative at (210) 345-2222 or (888) 272-8228.