Individual Retirement Account (IRA)

First Service offers a variety of IRA programs including regular share and certificate share accounts.

All of our IRA Accounts are fully insured by the National Credit Union Administration's Share Insurance Fund to $250,000 per account separate from your credit union accounts, and have no annual fees or maintenance charges.

Traditional IRA

You can choose a Share Account for your Traditional IRA that requires a low $50 minimum opening balance. This account is a quarterly share account that yields dividend earnings that are tax-deferred until withdrawn. It's a terrific way to save for retirement through convenient periodic deposits. As your account balance grows, you may want to switch your Traditional IRA to a term-certificate to maximize your earnings.

• Annual maximum contributions to a Traditional IRA are currently $5,000. Investors age 50 and over can make additional "catch-up" contributions up to a maximum of $1,000 and can be limited by earned income.
• Your contribution is tax deductible to income limit restrictions. Taxes on both contribution and earnings are paid at the time of withdrawal.
• Distribution is generally mandatory at age 70 1/2.

Roth IRA

Any individual or spouse who is employed, with no age restrictions, can contribute up to $5,000 per year from earned income in after-tax dollars in a Roth IRA. While the contribution is not tax-deductible, all earnings are tax-free when withdrawn according to government guidelines.

• The funds must remain in the account for a minimum of five years.
• Funds may be withdrawn for any purpose, starting at age 59 1/2, without paying any taxes whatsoever.
• Account may be retained after age 70 1/2.
• Earnings on contributions may be subject to a 10% penalty if withdrawals are made prior to age 59 1/2.
• Investors who are 50 and over can make additional "catch-up" contributions.
• A Roth IRA can be invested as a Share IRA or Certificate IRA.

Education Savings Account(s)

Save up to $2,000 a year, per child in special education accounts. Earnings will accumulate tax-free and, if used for qualified education expenses, withdrawals will also be tax-free.

• Recipient must be under 18 years of age.
• All funds must be distributed by age 30.

Earnings on contributions may be subject to a 10% penalty if withdrawals are used for other than education purposes. *Ask your tax advisor for guidance on "qualified education expenses".

IRA Certificates

In addition to Share Account IRAs, IRA Certificates offer members the opportunity to deposit their IRA money into a Certificate Account. IRA Certificates are available with terms from 6 to 60 months. You select the term that is right for you. The longer the term, the higher the dividend rate for added tax-deferred earnings. IRA Certificates offer the following:

• Higher rates of return are available in an IRA Certificate Account than in an IRA Share Account.
• Flexible terms from 6 months to 60 months.
• Minimum balances range from $500 to $1,000.
• No annual fees are charged for administering the account.
• JUMP rate and Variable rate IRA Certificates are also available.

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