What is a Roth IRA?

Starting In 1998, a new IRA known as the ROTH IRA became available. Contributions are taxed but all withdrawals, including earnings, are tax-free if the account has been open for five years and the account holder is 59 ½ or older.

Who is Eligible to Contribute to a ROTH IRA?

Every individual who has earned income or received alimony may contribute. Income from other sources such as investments or inheritance does not qualify. The accounts are available to couples with income of up to $150,000 and singles up to $95,000. Contributions are phased out between $150,000 and $160,000 for couples and $95,000 to $110,000 for singles.

I Am an Active Participant in an Employer Sponsored Retirement Plan, May I Contribute to a ROTH IRA?

The fact that you participate in an employer-sponsored retirement plan does not exclude you from making a non-deductible contribution to a ROTH IRA.

Are Interest and Dividend Earnings Tax Deferred?

All the earnings you accumulate in your Roth IRA remain tax sheltered and if they remain in the account for a period of five successive tax years they can be withdrawn tax-free. There are certain criteria that must be met to enjoy tax-free and penalty-free distributions. Consult your tax preparer.

How Much Can I Contribute to a ROTH IRA?

Each year you can contribute all or part of compensation up to $2,000 for individual tax-payers and $4,000 where both spouses have earned income (each spouse can contribute up to $2,000 each). Total yearly contributions that can be made by an individual to ALL IRAs (deductible, pre-act nondeductible and Roth IRAs) is $2,000 not counting rollover contributions.

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3 Ways of Protection on your VISA credit card

Credit card fraud costs consumers billions of dollars each year. To help prevent fraud from occurring with your Baker's Federal Credit Union VISA credit card, the credit union has implemented some security features. One feature is card activation. Whenever you receive a new card in the mail you will be required to activate that card prior to using it.

Another security feature reads your expiration date from the magnetic strip. This prevents thieves from duplicating your card if the number should become available to them because no approval would be issued due to a mismatch of the expiration date.

The third security feature detects fraudulent activity. For instance, several charges occurring from a foreign country while you are using your card in Omaha.

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Keep Your Credit Rating Clean

Few things in the world of finance are as important as a good credit rating. A clean credit rating is your best friend when it comes time to apply for a loan, rent an apartment or even apply for a job. To maintain a good credit rating, your credit union urges you to do the following:

• Pay your bills on time.
• Avoid getting over your credit limit on credit cards,
• Watch your debts in comparison to your income (often referred to as your Debt/Income ratio).
• Avoid pyramiding debt, which is applying for a credit card to pay off another card or loan.
• Maintain good account relationships with Bakers Federal Credit Union.

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Rate Adjustments Become Necessary as Interest Rates Fall

Interest rate adjustments downward by the Federal Reserve have forced bakers Federal Credit Union to adjust rates on several key accounts. The following rates were approved by the Board of Directors:

• Money Market Savings 2.96%, APY = 3.00% (beginning 2/1)
• Promotional Savings 4.65%, APY = 4.75% (beginning 1/1)
• Certificates of Deposits/IRAs Beginning 11/18/98
  6 month APY = 4.50%
  12 month APY = 4.75%
  18-36 month APY = 5.00%
• Count on College APY = 5.28%
  (Beginning 11/18/98)

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Two Holiday Campaigns are Big Success!

The Credit Union implemented two holiday promotions to help members glide through the holiday season.

The first promotion was a Skip-A-Payment campaign that allowed members to skip their December payments. The loan payment funds were deposited directly into the members account to be used for the holidays.

The second campaign was checks mailed to members in conjunction to their VISA credit cards. These checks could be used to pay off their bills, Christmas shopping, or for an after the holidays retreat.

Dont forget, its not too late to sign up for Christmas Club 1999. Simply call the credit union.

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