The United Federal Credit Union


Your Partner for Life!

Have you made your IRA Contribution for Tax Year 2011?

 

 

If you haven’t already funded your retirement account for 2011, do so by April 17, 2012. That’s the deadline for contributions to a traditional IRA, deductible or not, and to a Roth IRA. However, if you have a Keogh or SEP and you get a filing extension to October 15, 2012, you can wait until then to put 2011 contributions into those accounts. To start tax-free compounding as quickly as possible, however, don’t dawdle in making contributions.


Making a deductible contribution will help you lower your tax bill this year. Plus, your contributions will compound tax-deferred. To qualify for the full annual IRA deduction in 2011, you must either: 1) not be eligible to participate in a company retirement plan, or 2) if you are eligible, you must have adjusted gross income of $56,000 or less for singles, or $89,000 or less for married couples filing jointly. If you are not eligible for a company plan but your spouse is, your traditional IRA contribution is fully-deductible as long as your combined gross income does not exceed $167,000.


For 2011, the maximum IRA contribution you can make is $5,000 ($6,000 if you are age 50 or older by the end of the year). For self-employed persons, the maximum annual addition to SEPs and Keoghs for 2011 is $49,000.


Although choosing to contribute to a Roth IRA instead of a traditional IRA will not cut your 2011 tax bill—Roth contributions are not deductible—it could be the better choice because all withdrawals from a Roth can be tax-free in retirement. Withdrawals from a traditional IRA are fully taxable in retirement. To contribute the full $5,000 ($6,000 if you are age 50 or older by the end of 2011) to a Roth IRA, you must earn $105,000 or less a year if you are single or $167,000 if you’re married and file a joint return. Below are tables with this year’s limits:


 

Roth and Traditional IRA Contribution Limits (2006 to 2013)

Year Standard Contribution With Catch-Up Contribution
2006 to 2007 $4,000 $5,000
2008 to 2010 $5,000 $6,000
2011 $5,000 $6,000
2012 $5,000 $6,000
2013 Indexed with Inflation  
For Rates on our IRA Certificates click here.

The Advantage of Credit Unions

We value our members and think it is important to review the many benefits available to them, and the many differences between a credit union and commercial banks. Please take a few minutes to review these credit union benefits.

1. Credit unions typically pay higher yields on savings and certificates compared to commercial banks. Plus, accounts are federally insured.

2. Credit unions’ loan rates are generally lower than those at commercial banks. Consider refinancing your bank loans and credit card balances at the credit union to save money.

3. Credit union service fees are often lower than the fees charged for similar services at commercial banks.

4. Credit unions still make small unsecured loans.

5. Credit unions have robust Web sites that allow you to obtain information and do your banking and bill payments online.

6. Credit unions offer low rate cards. Plus, you may qualify for a credit card when a bank would not extend you credit. Transferring high-rate bank and store credit to a credit union could result in significant savings.

7. Credit unions belong to ATM networks that allow you to make FREE withdrawals from your account at thousands of locations nationwide.

8. Credit unions are member-based non-profit organizations. When you join, you become a member-owner and can participate in electing the Board of Directors. All members have an equal vote, no matter the amount of money in your account(s) or the number of services you use. Profits are returned to members in the form of attractive savings and loan rates. In contrast, banks focus on profits for their shareholders.

9. Credit union membership is a lifetime benefit. Once you become a member, you can remain a member even if you change jobs or move to another area of the country

10. Your immediate family members are also eligible for credit union membership. Encourage them to join the credit union soon so they can enjoy the same benefits that you do.

Stop by, give us a call or explore our Web site soon to take full advantage of your membership



Holiday Shopping Alert

As the holiday season approaches, it is important to be aware of potential scams. Con artists are working hard to get their hands on your member’s money as well as personal and financial information. To help reduce the risk and protect credit union members, we offer a list of potential scams along with tips for a safer and smarter holiday shopping season. 

Holiday Scams Tips
  • Watch for mobile malware – especially deals for black Friday and cyber Monday.
  • Be cautious when looking for free mobile apps – may be an attempt to steal information.
  • Watch for malicious screensavers, ring tones and e-cards.
  • Watch for purchase offers of fake anti-virus software – this scam may trick you into purchasing the software.
  • Secure your computer – at a minimum, have anti-virus, anti-spyware and a firewall.
  • Remember to turn off your computer when you’re done shopping.
  • Watch for social media scams – phony Facebook and Twitter sites or other online promotions and contests.
  • Beware of scammers advertising popular holiday items.
  • Check out the seller of items – research before you buy.
  • Don’t fall for the mystery shopping scam asking you to shop for $XX dollars (ex: $100).
  • Online coupon scams may ask for your personal or financial information using email.
  • Holiday phishing scams – Don’t fall for emails, text messages or phone calls asking for personal or financial information.
  • Monitor credit, debit and account numbers used for your holiday shopping to help identify any unauthorized usage.
  • Vacation scams – don’t post holiday pictures until you are back home.
  • Lighted parking lots – survey the parking lot surroundings. Make sure you have your car keys in your hands before entering the parking lot.
  • If an offer or item sounds too good to be true, it’s probably a scam.
  • Report scams to the Federal Trade Commission at www.ftc.gov or call toll-free 1.877.ftc.help (1.877.382.4357)
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