IRAs

Greater Kentucky Credit Union's
Top 5 Secrets to Retirement Success

Greater Kentucky Credit Union offers a number of products to ensure the growth and
success of your IRA and it's time we told you all about them!

SECRET # 1: IRA Passbook
You know you need to start saving for retirement but aren't sure where to begin – with an IRA Passbook, you can start slow and increase your IRA as your budget permits. As long as you are receiving a paycheck, you are never too young to start saving for retirement.

$25 minimum to open (no minimum with payroll deduction).
Dividends compounded and paid quarterly.
Payroll deduct as little as $5 per pay period.
No set-up or annual fee.

SECRET # 2: Money Market Investment IRA
A Money Market Investment IRA is the perfect place to deposit your money while deciding on your term investment. You'll also earn more as your balance increases due to the tiered dividend structure.

$50 minimum to open (no minimum with payroll deduction).
Dividends compounded and paid monthly.
Payroll deduct as little as $5 per pay period.
No set-up or annual fee.

SECRET # 3: 90-Day Super saver Certificate & IRA
With a 90-Day Super Saver Certificate or IRA, you can earn a higher dividend while maintaining the flexibility to move the funds after 90 days.

$500 minimum to open.
Renews every 90 days.
Dividends compounded and paid quarterly.
Payroll deduct as little as $5 per pay period.
No set-up or annual fee.

SECRET # 4: 2-Year Flex IRA Certificate
Flexible IRA Certificates will allow owners to increase the rate once a calendar year on the certificate if the rate on Two Year Certificates increase.

$1,000 minimum to open.
Can increase rate once a year from the purchase date of the CD if the certificate rate on 2-Year Certificates increase.
Payroll deduct as little as $5 per pay period.
Pays the same as any 2-Year Certificate.
No set-up or annual fee.

SECRET # 5: 6-Month, 1, 2, 3 and 5-Year IRA Certificates
At Greater Kentucky, the possibilities to grow your IRA are endless.

6-Month, 1, 2, 3 and 5-Year IRA Certificates require a minimum of $1,000 to open.

IRA Check Advantage
With IRA Check Advantage you are able to manage your own distributions as you need them by simply writing a check.

Write your own distribution at your convenience (monthly, quarterly, semi-annually, annually or for a spur of the moment purchase
Self-distribution available (without IRS penalty) for those
59 1/2 and older.
To sign up for self-distribution contact an IRA Specialist at
(859) 231-9300 or (800) 432-7393.
No set-up or annual fee.

All of Greater Kentucky's secrets to retirement success can be used with Traditional and Roth IRAs, as well as Coverdell Education Savings Accounts!

Traditional IRA

A Traditional IRA is a type of retirement plan that has been in existence since 1975. Traditional IRAs offer tax-deferred earnings, and the possibility for tax-deductible contributions. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term savings plan. Individual Retirement Accounts (IRAs) were originally designed to help you save for retirement, but with all the options available you can also save to buy your first home or for a child's college education. Greater Kentucky offers Traditional and Roth IRAs as well as Coverdell Education Savings Accounts with no set-up or annual fees.

Earnings are not taxed until they are withdrawn.
Contributions may be tax deductible (consult your tax advisor).
Contributions can be made at any time before age 70 1/2, up to $4,000 annually per individual account, $8,000 per married couple filing jointly (as long as there is earned income).
An additional $500 "catch-up" contribution is allowed annually for those 50 and over.
Penalty-free distributions can begin at age 59 1/2 and are mandatory after age 701/2.
Please consult your tax advisor regarding the specific rules and regulations surrounding the Traditional IRA.

Roth IRA

The Roth IRA was created by the Taxpayer Relief Act of 1997. Named for former Senate Finance Committee Chairman William Roth, Jr., this IRA offers more incentives to boost your retirement savings, as well as more ways to use your nest egg. Unlike Traditional IRAs, your contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free. Of course, you must conform to the plan provisions to get this tax-free advantage.

Contributions are not tax deductible.
Contributions can be made at any time, up to $4,000 annually per individual account, $8,000 per married couple filing jointly, as long as income is earned (no age limit).
An additional $500 "catch-up" contribution is allowed annually for those 50 and over.
Penalty-free, tax-free distributions of earnings can begin at age 59 1/2 if you have held the IRA for at least five years, but are not mandatory at any age.
Penalty-free, tax-free distributions of earnings can also be taken for a qualified first-time home purchase up to $10,000, if the account has been held for five years.
Penalty-free, tax-free withdrawal of your regular contributions can be made at any time; special rules apply to withdrawal of rollover contributions.
Please consult your tax advisor regarding the specific rules and regulations surrounding the Roth IRA.

Coverdell Education Savings Account

The Taxpayer Relief Act of 1997 created the Education IRA, now known as the Coverdell ESA. Its sole purpose is to help you pay for your child's education expenses, such as tuition, fees, books, supplies, equipment, and, in some cases, room and board and computers. These options were improved by the Economic Growth and Tax Relief Reconciliation Act of 2001.

Contributions are not tax deductible.
Contributions up to $2,000 per year may be made annually for each child until the child's 18th birthday.
Funds must be disbursed or rolled over by the child's 30th birthday. Distributions are penalty-free and tax-free if used to pay expenses related to the beneficiary's education.
Please consult your tax advisor regarding the specific rules and regulations surrounding the Coverdell Education Savings Account.

IRA Savings Rates

To open an IRA contact any IRA Specialist at 859-231-9300 or 800-432-7393. IRA accounts are insured separately up to $250,000 by the National Credit Union Administration (NCUA), a U.S. Government agency.

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