IRA's

Whether you are looking to save money for your secure retirement or set aside funds for the education of a child or loved one, an IRA may benefit you.

Annual Contribution Limits for Traditional and Roth IRAs (combined):

Maximum Contribution Limits

Taxable Year 2011 $5,000.00

Deadline to make 2011 contributions and take tax benefits is April 17, 2012.

Additional Catch-Up Contributions can be made by individuals over Fifty. Qualified individuals who are fifty years of age or older will be permitted to contribute even more money to their IRAs

Maximum Contribution Limits for

Members Fifty and Over

Taxable Year 2011 $6,000.00

What is a Traditional IRA?

Who can open a Traditional IRA?

Anyone under the age of 70 ½ with earned income.

What are the benefits of the traditional IRA?

Contributions to the accounts may be tax-deductible and the earnings grow tax-deferred until the time the funds are withdrawn.

When can withdrawals be made from the account?

Withdrawals may be made penalty-free after the owner is age 59 ½, or

For qualified higher-education expenses,

Disability,

Qualified medical expenses exceeding 7.5% of income,

Payments to beneficiaries upon the owner’s death,

Or payment of health insurance premiums while unemployed.

What is a Roth IRA?

Who can open a Roth IRA?

Anyone who has earned income.

What are the benefits of the Roth IRA?

Withdrawals are not required to start when the owner reaches age 70 ½.

Contributions can be withdrawn tax and tax-penalty free at any time. Earnings may be withdrawn tax and tax penalty free after the account has been opened at least five years provided the withdrawal meets one of the following conditions:

the owner is 59 ½ or older,

Disabled,

Death,

First time home purchase,

Qualified higher-education expenses,

Qualified medical expenses exceeding 7.5% of income, or

Payment of health insurance premiums while unemployed.

When can withdrawals be made from the account?

Contributions can be withdrawn any time. Earnings may be withdrawn tax free provided the account has been opened at least five years and one of the above listed qualifying circumstances exist.

What is an Coverdell IRA?

Who can open an Coverdell IRA?

Anyone under the age of 70 ½ with earned income.

How much can be contributed to the Coverdell IRA?

Contributions to an Coverdell IRA are limited to maximum of $2,000 per year beginning in 2002. Contributions are not allowed once the beneficiary of the Coverdell IRA reaches 18 years of age. Contributions are not allowed in any year that contributions to a state tuition program for the same IRA beneficiary are made.

What are the benefits of the Coverdell IRA?

Withdrawals for qualified higher-education expenses are tax-free. Funds can be transferred from one child’s account to another child in the family.

For additional information on Coverdell IRA, please Click Here.

If you any questions regarding IRAs, please contact a member service representative at

850-432-9939 or e-mail your question to us @ pgfcu@pgfcu.com.