It's never too early to plan for your retirement, and it’s never too late to invest in your future! South Bay Credit Union makes it easy, with a choice of IRAs offered with no set-up fees.

Membership Share (Depository) IRAs
Open this IRA with a deposit as low as $5, and make periodic contributions thereafter, up to an allowable annual maximum. For Membership Share IRAs, you may choose automatic deposit options: Payroll Deduction, Direct Deposit or Automatic Transfer. Ask a South Bay Credit Union IRA representative for details.

Traditional IRAs

• Offers tax-deferred earnings and possibly tax deductible contributions if you meet the requirements. If you and/or your spouse actively participate in an employer-sponsored retirement plan, you can deduct contributions only if your income is below certain limits. If you’re not participating in a retirement plan, your traditional IRA contribution is deductible regardless of income.
• You can contribute if you have earned income and you will not reach age 701⁄2 by the end of the year. If you file a joint tax return, you can treat your spouse’s income as your own.
• You can contribute to a traditional IRA, an employer-sponsored retirement plan, and a Roth IRA in the same year.
• When you withdraw from a traditional IRA, your withdrawal will be treated as taxable income.
• If you make a withdrawal before age 591⁄2 you generally must pay a 10% tax on early distributions. There are exceptions, such as rollovers, so ask your credit union IRA representative for more details.
• You must begin taking required minimum distributions at age 701⁄2.

Roth IRAs

• Contributions are not tax-deductible, however, you can withdraw contributions and earnings from a Roth IRA tax-free.
• To contribute to a Roth IRA, joint filers’ modified adjusted gross income must be less than $160,000 and less than $110,000 for single filers.
• You can withdraw funds tax-free before retirement under certain conditions: if your funds have been in your account for at least five years, you’re older than age 591⁄2, you buy a first-time home, or if you become disabled or die.
• You’re not required to start taking minimum distributions when you reach age 701⁄2 as with a traditional IRA. You can let your money continue to grow tax-free for as long as you like.

New IRA contribution limits:
Up from $3,000 a year to $4,000 a year in 2005-2007; and $5,000 a year in 2008-2010. The limit will be adjusted annually for inflation in $500 increments starting in 2009.

Those age 50 and older have a catch-up deal—they can contribute an extra $500 a year in 2005 and an extra $1,000 a year starting in 2006 and thereafter.