Roth IRA Accounts

If you'd rather pay taxes on your retirement income now rather than later, consider America First's Roth IRA.

Open a Roth IRA Accumulator, with no minimum deposit required
Accrue tax-free earnings if you meet certain conditions
Deposit money after taxes
Open a Roth IRA Certificate with a $500 minimum deposit
Open a Roth Dedicated Savings Account with no minimum deposit and a minimum automatic transfer of $10.00 per month
Withdraw the entire amount tax-free after five years if:
1. You are 59½ or older, or
2. You are a first-time home buyer, or
3. You are disabled, or
4. You are a beneficiary of the deceased owner

Visit a local branch to Open an Roth IRA Account today!
· Penalties may apply for early withdrawal.

The following chart demonstrates the additional benefits of a Roth IRA:

Years in IRA	5	10	15	20
Roth IRA	Total available for tax-free withdrawals after age 59½.
	$12,672	$31,292	$58,648	$98,845
Traditional IRA	Total available after tax if tax rate becomes one of the following at retirement:
If tax rate drops to 15%	$13,849	$35,162	$63,242	$105,182
If tax rate stays at 28%	$12,446	$30,249	$55,763	$92,401
If tax rate rises to 31%	$12,122	$30,391	$54,036	$89,451
If tax rate rises to 36%	$11,581	$27,910	$51,157	$84,533
If tax rate rises to 39.6%	$11,191	$26,795	$49,084	$80,992

Based on contributions of $2,000 at the beginning of the year for 5, 10, 15, or 20 years with earnings compounded annually. Assumes proceeds are withdrawn without penalty at year-end.

Traditional IRA figures assume you are in the 28% tax bracket when the contributions are made and shows how much is available after tax if your tax rate drops, holds steady, or rises. Traditional IRA balances assume the annual tax savings were reinvested in a taxable account and combined with the IRA balance upon withdrawal.

Source: Deloitte and Touche

Choosing The Right IRA

Which IRA is right for you? Review the chart below to see whether the Traditional or the Roth IRA will benefit you most.

	Roth IRA*	Traditional IRA*
Tax-deductible contributions?	No.	Maybe. Deductible contributions could be phased out as adjusted gross income increases.
Earnings grow tax-deferred?	Yes. Possibly tax-free.	Yes.
Tax-free withdrawal*?	Yes.	No.
Maximum annual contribution for IRAs?	2005: $4000 for individuals under age 50 $4500 for individuals age 50 or older $8000 for couples $9000 if both are age 50 or older (Total maximum for both IRAs) 2006-2007: $4000 for individuals under age 50 $5000 for individuals age 50 or older $8000 for couples $10000 if both are age 50 or older (Total maximum for both IRAs)	2005: $4000 for individuals under age 50 $4500 for individuals age 50 or older $8000 for couples $9000 if both are age 50 or older (Total maximum for both IRAs) 2006-2007: $4000 for individuals under age 50 $5000 for individuals age 50 or older $8000 for couples $10000 if both are age 50 or older (Total maximum for both IRAs)
Required minimum distribution rules?	No.	Yes.
Contribution allowed after age 70½?	Yes, while you receive earned income.	No.

* Subject to IRS provisions. Please consult your tax advisor.

Source: CUNA Brokerage Services, Inc.