WSECU offers three Individual Retirement Accounts to help you save - tax-free - for your retirement or a child’s educational expenses.

With a Traditional IRA, you may make tax-deductible contributions to your retirement fund. Your funds grow tax free until withdrawal. And, you may see significant tax savings in the years that contributions are made.

Contribution limits vary from year to year, in 2008 any qualifying individual can contribute up to $5,000 to an IRA and generally deduct that amount from his or her taxable income.

You can begin making withdrawals after age 59^1/2. Withdrawals must begin by age 70^1/2.

When you do make withdrawals, you’re only taxed on the amount you receive each year.

Unlike the Traditional IRA, Roth IRA contributions are not tax deductible, but qualified distributions are tax-free.

Your contributions and the earnings are not taxed when withdrawn upon retirement. Contributions are available tax and IRS penalty-free, whenever you need them.

However, there is a penalty and taxes will be owed if earnings are withdrawn outside IRS guidelines.

The Roth IRA lets you contribute earned compensation regardless of your age. You also can withdraw from your Roth IRA account at any age.

If you are 50 or older, you may consider the new "Catch-Up Contribution." You can contribute an additional $500 per year to your Traditional or Roth IRA. In a few years, the catch-up contribution allowance increases to $1,000.

The Coverdell Education Savings Account may be the best way for you to build college education savings for your children or grandchildren under age 18.

You can contribute up to $2,000 per tax year per child until the child turns 18 (some exceptions apply). Contributions are not tax-deductible, but earnings accumulate tax-free.

Funds used for higher education expenses are tax-free when withdrawn, as long as the recipient is under age 30.

IRA Contributions

		Type of IRA		Contribution Limit		Effective Date		"Catch-up Contribution"
		Traditional or Roth IRA		$5,000          indexed to inflation		2008                        2009		$1,000              $1,000
		Education IRA		$2,000		2002		Not available

To get more information about your IRA options:

Contact your Call Center at 800-562-0999 (weekdays from 7 am to 7 pm and Saturdays from 9:30 am to 2 pm) or e-mail us. 

Or to start your IRA today, you can drop into any of our 18 branches statewide.