THE NEXT BEST THING TO A MONEY TREE.

Wouldn't it be nice if you could plant a money tree in your back yard, and whenever you needed a little extra cash, you could pick off a few bills? An NFG #2 Federal credit Union IRA account could be the next best thing !!!

With a little patience, and steady contributions, you will see your IRA grow into an account that will help provide safety and security for you and your family for years to come.

There are a variety of IRA accounts, we hope the following information will help you evaluate your IRA options.

Traditional ...is one of the original IRA plans, being in existence since 1975. Traditional IRA's offer tax-deferred earnings, and the possibility for tax-deductible contributions. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term retirement plan.

     You can contribute to a traditional IRA if you earn compensation and you will not reach age 70 1/2 by the end of the year. If you file a joint income tax return, you can treat your spouse's compensation as your own (except that your combined contributions cannot exceed your combined compensation). For 2008, persons under age 50 can contribute up to $5,000.00 and those over age 50 can contribute an additional $1,000.00. (2009 will remain at $5,000 and $6,000). Allowable contributions for future years will be even higher. You can contribute into an IRA even if you participate in an employer-sponsored retirement plan.

Roth ... IRA's were created in 1997, and allow participants to make annual non-deductible contributions. Unlike the Traditional IRA, Roth earnings can be tax free. The contribution limits are the same as the Traditional IRA.

     As with most matters, restrictions do apply check out our comparison chart below, or better yet ... call the Credit Union for more details !!!

COMPARISON OF  TRADITIONAL VERSUS IRA ACCOUNTS

	Who can contribute	How much can I contribute	Who can make deductible contributions	What are the tax advantages	When can I withdraw without restrictions
Roth IRA	Anyone who has income from compensation (or is filing jointly with a spouse who earns compensation) with the following MAGI* - Up to $116,000 (single filers) - Up to $169,000 (joint filers)	For 2008-09, under age 50 $5,000 - age 50 and over $6,000 Cannot exceed compensation Reduces by the contribution made to a Traditional IRA	No one can deduct contributions	Regular contributions can be withdrawn tax and penalty free at any time. After the account has been open five tax years, earnings can be withdrawn tax and penalty free for any of the following reasons: age 59 1/2, disability, death, first time home purchase.	Earnings are tax free if account is open for five tax years and withdrawn for a qualified reason. Not required to start withdrawals at age 70 1/2.
Traditional IRA	Anyone under age 70 1/2 who has income from compensation (or who is filing jointly with a spouse who earns compensation).	For 2008-09, under age 50 $5,000 - age 50 and over $6,000. Cannot exceed compensation. Reduces by the contribution made to a Roth IRA.	Fully-deductable contributions: - Single individuals  not active in employer retirement plans (Regardless  of income) - Single individuals active in employer retirement plans with MAGI* of less than $63,000. - Married couples with neither spouse active in an employer retirement plan (Regardless of income). - Married individuals active in employer retirement plans with joint tax return showing MAGI* of less that $105,000. - Individuals with incomes exceeding the above limits may be able to deduct an amount that is not less than the maximum amount that can be contributed.	Earnings grow tax-deferred until withdrawn. Contributions may be tax-deductible.	Withdraw penalty free for any of the following reasons: - Qualified higher-education expenses - First time home purchase. - Age 59 1/2 - Disability. - Qualifying medical expenses. - Payment to beneficiaries upon the owner's death. - Payment of health insurance premiums while unemployed for 12 weeks or longer.