JSC offers a variety of federally insured tax-deferred ways to save for retirement while earning a competitive rate. You can gradually accumulate retirement savings through automatic payroll deductions, or earn a higher rate by depositing $500 or more into an IRA certificate of deposit. A JSC FCU IRA is also a perfect place to reinvest a 401K, Retirement Account or Stock Rollover from your employer when you change jobs. IRAs are available to you in different varieties and a tax advisor could help you decide which one would meet your future financial goals.

Savings - Traditional IRA

If you are younger than age 70 1/2 for the entire tax year, and have compensation, you are eligible to establish a traditional IRA. There is no minimum amount to deposit to a variable rate IRA savings account and $500 will open a fixed rate IRA certificate of deposit. Withdrawals on all IRA accounts may begin without a penalty at the age of 59 1/2 and must be started by age 70 1/2. You may contribute up to $4K (2006-7) per year on an individual basis. If married both husband and wife can open an IRA and contribute up to $4K each per year.

Savings - Roth IRA

A Roth IRA is an individual retirement account that allows only nondeductible contributions but features tax-free withdrawals for certain distribution reasons after a five-year holding period. This period begins with the tax year for which your first contribution is made. After that, any earnings you withdraw for a qualified distribution reason are income tax free and penalty tax-free. Qualified distributions are:

• Distributions made on or after the date on which you attain age 59 1/2
• Distributions made to your beneficiary (or your estate) upon your death
• Distributions attributable to your being disabled
• Qualified first-time home-buyer distributions (up to $10k)

Savings - Coverdell Education IRA

The Education IRA allows members a great opportunity to save toward expenses for higher education. Key features of this account are:

• Up to $2,000 in annual, non-deductible contributions until the child's 18th birthday

              (Income limitations may apply)

• Withdrawals for higher education are tax-free
• Anyone can contribute to the account
• Withdrawals not used for higher education are subject to normal income tax plus 10% penalty

For more information on JSC Federal Credit Union, or to find out how you can join, please call 281.488.7070 or 800.940.0708, or visit any branch office or e-mail.