Traditional IRAs

Traditional IRAs are a great way to invest in your future. With a Traditional IRA, your retirement savings will grow tax deferred and your contributions may be tax deductible.¹ You are eligible to open and contribute to a Traditional IRA if you are less than 70 and one-half years old and you or your spouse received taxable compensation during the tax year.

Features & Benefits

For year 2009, you can contribute up to $5,000.00 to your Traditional IRA or up to $6,000.00 if you already reached age 50 or older.

Contributing to your IRA
You may contribute to your Traditional IRA in several ways:

• Normal contributions
• Catch-up contributions of an additional $1,000 if you are age 50 or older
  
• Transferring an existing IRA to BFSFCU
• Direct rollover from a retirement plan (once every 12 months)
• Indirect rollovers - distributions from a retirement plan can be redeposited to your IRA within 60 days
  
• Spousal contributions
• Re-characterization contributions - reapply funds that were erroneously invested in a Roth IRA, but did not qualify

Withdrawing funds
You may withdraw funds from your Traditional IRA account at any time, but you will incur a 10% early withdrawal penalty if you have not yet reached age 59 and one-half (some exceptions may apply). At age 70 and one-half, you are required to take the minimum distribution.

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¹Consult your tax advisor.