Individual Retirement Accounts (IRAs)

What will you do with your 401k if you retired next month? Or if you change jobs? If you need help with any of these questions, call today 952-445-0888 ext. 19 to schedule a Complimentary consultation.

There are many types of IRA accounts available with most savings plans. How do you choose the one that's right for you?

One big difference between IRA options is whether your savings are taxed when they go into the account or when they are withdrawn. When looking at your options, consider your current tax bracket and the one you expect to be in during retirement. This will affect the relative value of a current tax deduction versus taxes that may be due in retirement.*

Consider when you plan to retire. Over time, the future savings of tax-free withdrawals may become more valuable than the current savings available from a deduction.

*For specific tax advice, please consult a qualified tax professional.

Traditional IRAs

Who can contribute?
Anyone can set up and contribute to a Traditional IRA account if:
· You are under age 70 ½ and have income from compensation (or you are filing jointly with a spouse who earns compensation)
· You received a distribution from a qualified retirement plan and wish to roll over the proceeds of the plan into an IRA

How much can I contribute?
Through 2007, you can contribute up to $4,000 annually. For owners age 50 and older, your limits increase to $4,500 for 2005 and $5,000 for 2006 and 2007.

Note that your contributions cannot exceed Compensation. They also reduce the contributions that can be made to Roth IRAs.

What are the tax advantages?
Your earnings grow tax-deferred until withdrawn, and contributions may be tax-deductible.

Call our advisor Rick Hoel for help with your retirement options. A consultation is free and without obligation. Just call 952-445-0888 ext. 19 to set up your appointment today, and soar higher!

IRA Rollover Accounts

An IRA rollover account is used if you are changing jobs or wish to consolidate existing IRA accounts in a single IRA. Rollover or transfer retirement funds from a former employer's plan or other IRA accounts into an account with CUSO Financial Services L.P.

Roth IRAs

If you have enough income from other sources to fund your retirement and want an account to build assets for future generations, a Roth IRA might be your choice. Unlike a traditional IRA, it has no requirement that you begin taking minimum distributions at a certain age.

Who can contribute?
Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation), with the filing Modified Adjusted Gross Income (MAGI):
  · Up to $95,000 for single filers
  · Up to $150,000 for joint filers

Reduced contributions allowed for higher incomes:
  · Up to $110,000 for single filers
  · Up to $160,000 for joint filers

How much can I contribute?
Through 2007, you can contribute up to $4,000 annually to a Roth IRA. For owners age 50 and older, your limits increase to $4,500 for 2005 and $5,000 for 2006 and 2007.

Note that your contributions cannot exceed Compensation. They also reduce the contributions that can be made to traditional IRAs.

What are the tax advantages?
Your earnings are tax-free if the account is open for five years and withdrawn for a qualified reason (age 59 ½, disability, death, or a first-time home purchase**). Also, there are no mandatory withdrawals starting at age 70 ½.

 
* MAGI - Modified Adjusted Gross Income from the federal tax form
** Lifetime limit for exemption on first-time home purchase is $10,000

Investment products and services offered through CUSO Financial Services, L.P. (CFS), an independent broker/ dealer, are not NCUA/NCUSIF insured, not Credit Union guaranteed and may lose value. Representatives are employed by South Metro Federal Credit Union and registered through CFS (Member FINRA/SIPC).

*Representatives are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with residents of other states will only be made upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside the United States.

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