Savings Accounts from the Champlain Valley Credit Union


IRA INFORMATION

No matter where your road takes you, a credit union IRA can play a major role in your financial security. An IRA is a smart way to save and there are advantages to opening an IRA at your credit union.

Traditional IRA
Who can contribute?
	Anyone under age 70.5 who has income from compensation (or who is filing jointly with a spouse who earns compensation).
Tax benefits
	Certain contributions are tax-deductible. All earnings are tax-deferred Distributions for a first-time home purchase, or higher-education expenses are penalty-free
Roth IRA
Who can contribute?
	Anyone under age 70.5 who has income from compensation (or is filing jointly with a spouse who earns compensation) with the following MAGI*: - Up to $95,000 (single filers) - Up to $150,000 (joint filers) Reduced contributions allowed for higher incomes (up to $110,000 for single filers and $160,000 joint filers).
Tax Benefits
	Contributions are non-deductible, but qualified distributions (e.g. after age 59.5 or for a fist-time home purchase) are tax-free. Distributions are penalty-free for: - Higher-education expenses - Large medical expenses - Certain health insurance premiums
Education IRA
What is the Education IRA?
	A new kind of tax-advantaged savings account solely for the purpose of helping you pay for your child's higher-education expenses, such as college tuition, books, and room and board.
What is the most I can contribute?
	Up to $500 per year per child.
Who can contribute?
	Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation) with the following MAGI*:
	Single filer with MAGI* between $95,000 and $110,000 Joint filer with MAGI* between $150,000 and $160,000 If your income exceeds $110,000 as single taxpayer or $160,000 as a joint filer, you can't make a regular Education IRA contribution for that year.
Tax benefits:
	Qualified withdrawals are both tax-free and penalty-free.
MAGI is Modified Adjusted Gross Income as reported on your tax return. Annual contributions to a traditional and/or Roth IRA must not exceed $2,000 or 100% of compensation, whichever is less.

Champlain Valley Credit Union
1 Market Place, Suite 8 Essex Junction, VT 05452		7 Green Street Vergennes, VT 05491