Terri Mansell Investment Executive

Traditional or Roth IRA?
By Terri Mansell

Now is the time to contribute to your Roth IRA or traditional IRA. You have until April 16, 2007, to make your 2006 contributions. Check out this guide to help you understand the differences between the Roth and traditional IRA.

Consider a traditional IRA if:

• You are younger than 70 ½.
• You are seeking tax-deferred earnings and/or tax-deductible contributions.
• You expect to be in a lower tax bracket at retirement.

Consider a Roth IRA if:

• You seek tax-free earnings or tax-free withdrawals.
• You are likely to be in the same or higher tax bracket in retirement.
• You want to avoid mandatory distributions or would like to contribute beyond age 70 ½.

Contribution Limits for 2006 and 2007

• $4,000 if you are under age 50 at year's end
• $5,000 if you turn age 50 by year's end

United Health Services Credit Union can help you open your IRA in a Certificate Account, or you can meet with Terri to open a brokerage account for your IRA. Both traditional and Roth IRAs have rules and guidelines, and this article is not intended to give tax advice. Please consult with a tax advisor to determine which IRA is best for you.

Brokerage services through DFC Investor Services, member NASD and SIPC. DFC and United Health Services Credit Union are not affiliated. Investments are not deposits; not NCUA/NCUSIF-insured; not insured by any federal government agency; and not guaranteed by the Credit Union. May lose value.