Traditional IRA

A Traditional IRA is a tax-deferred individual retirement account that allows:

• Annual contributions of up to $5,000 (or $6,000 if over age 50½) for each income earner.*
  
• Fully deductible contributions for all working individuals who are not active participants in employer-sponsored plans or for plan participants within certain income ranges.**
  
• Contributions up to but not including, the year you reach 70½. Earned income must be at least equal to your IRA contributions.
  
• Married couples who file a joint income tax return may contribute to an IRA for the nonworking spouse. Income limits affect the deductibility of contributions.**
  
• Tax-deferred earnings on contributions.
  
• Tax-deductible contributions. Earnings are taxed at your regular income tax rate upon withdrawal. ***
  
• Other restrictions apply***
  

To find out more, contact:

Karen DiBrita
IRA Specialist, NEFCU
(516)-714-2049
dibritak@nassaued.org

Considering other IRA investments or need help with a rollover from another IRA, 401K, 403b or other qualified plan? For more information on mutual funds, stocks, or bonds, contact NEFCU Investment Services

---

Tax year 2008 contributions of up to $5,000 (or $6,000 if over age 50½) for each income earner. Tax year 2009 and after the allowable contribution increases to $5,000 plus COLA with an additional $1,000 for investors 50 years old or older.
**Full or partial deductibility of contributions for active participants in a retirement plan are to be determined by your tax advisor.
*** Penalties for early withdrawal if you're under age 59½. Required distributions must start in the year you reach age 70½.
For further information, consult your tax advisor or the IRS website at http://www.irs.gov/