Regardless of your tax deductibility, you can contribute your gross income up to $5,000 if under age 70½ or up to $6,000 if 50 years or older.

Make contributions at any time. Contributions made through Automatic Transfer, Payroll Deduction, Direct Deposit, psecu@home or over the Self-Service Telephone (SST) are recorded as current calendar-year contributions. Contributions made between January 1 and April 15 of the current calendar year for the previous calendar year must be made by check, cash or by contacting the PSECU Call Center to transfer funds within your account. Your signature is required as a follow-up.

You can rollover funds into your PSECU Traditional IRA from any other existing IRA. The funds must be deposited within 60 days of the day you receive the money. Rollovers aren't part of your yearly contribution and you can still make an annual contribution up to $5,000, or $6,000, if you're 50 years or older, depending on your Modified Adjusted Gross Income. Rollovers are reported to the IRS. Rollover deposits are irrevocable and a form must be signed acknowledging rollover deposits. Let PSECU know if your deposit is a rollover or a current-year contribution.

The Internal Revenue Service allows only one rollover withdrawal from each IRA in a 12-month period. This 12-month rule applies to each separate IRA you own and is determined from the date the IRA funds are received. Period. This 12-month rule applies to each separate IRA you own and is determined from the date the IRA funds are received.

You can withdraw funds without penalty from your Traditional IRA when you reach the age of 59½. It isn't necessary to be retired. The taxable portion of any non-recurring withdrawal made before age 59½ is subject to a 10 percent IRS penalty tax. The penalties may be waived in case of permanent disability, divorce, death, part of a series of "substantially equal periodic payments," higher education expenses, first-time home purchases, medical expenses or health insurance costs incurred by unemployed individuals.

In case of death, your beneficiary receives the balance of your IRA. If the beneficiary is a spouse, the funds can be rolled over to his or her own PSECU Traditional IRA.

If you have a Traditional IRA elsewhere, it can be transfered to PSECU. You only need to complete an IRA Transfer Authorization form and PSECU will transfer the funds from an existing IRA to your PSECU Traditional IRA. There is no limit to the number of transfers that can be made. Transfers aren't part of your yearly contribution amount and they aren't reported to the IRS.

An eligible rollover distribution from your employer's qualified pension, profit sharing, stock bonus plan, annuity plan or tax sheltered annuity plan can be rolled over to a Traditional IRA. You can roll over all or part of the taxable distribution. Direct Rollovers aren't part of your yearly contribution and aren't included in the one per 12-month rule. No tax is withheld from any part of the designated distribution paid to the IRA. If any part is paid directly to you, the employer must withhold 20% of the taxable amount.

A Traditional IRA provides two very important tax benefits. First, the dividends earned on your IRA Certificates and IRA Shares are deffered until you withdraw your funds. In effect, the interest earned is not taxed until you begin taking distributions from your IRA.

Second, depending on your participation in an employer-sponsored pension or profit-sharing plan and your annual income, all or part of your Traditional IRA contributions may be deducted from taxable income on your federal Income Tax return.

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