Tax season is also IRA season. That’s because saving taxes are on members’ minds, and IRAs offer great tax advantages. Here’s a quick overview of IRAs that should help as you consider your options.
What’s an IRA?
IRA stands for Individual Retirement Account. It is an account that allows you to accumulate tax-advantaged retirement savings. The dollars put into an IRA can be invested into CDs, Mutual Funds, stocks, bonds, annuities or other products. There are two types of IRAs, the Traditional IRA and the Roth IRA.
What are contributions?
Members may deposit money each year into an IRA up to the amounts allowable under the tax law for the specific year. These deposits are called “contributions.”
When can members make contributions?
Members may make their 2010 contributions through April 18, 2011. And some members may want to get a head start on their 2011 contributions now. Contributions for 2011 can be made anytime between January 1, 2011 and April 15, 2012.
How much can members contribute?
The maximum annual limit for 2010 is $5,000. For people age 50 and over, they can contribute an extra annual $1,000 “catch-up”.
If you would like to open or contribute to your IRA for the 2010 tax season please give Lori Pine a call at (801) 223-7502 to set up an appointment with Curt Willardson, Dave Palmer, or Dan Palmer.
Lori M. Pine
Utah Community Investment Services
Curtis Willardson, CFP, CLU and Dan Palmer are registered representatives offering securities and investment advisory services through Financial Network Investment Corporation, member SIPC. David Palmer is a registered representative offering securities through Financial Network Investment Corporation, member SIPC. Utah Community Investment Services, Utah Community Credit Union and Financial Network are independent companies. Registered address: 188 W. River Park Drive, Provo, UT 84604.
Investments are not deposits; not NCUSIF insured; and not insured by any federal government agency. No credit union guarantee. May lose value.