Traditional IRA

A Traditional IRA allows you to defer taxes on earnings of contributions until they are withdrawn. Contributions may be tax deductible in the tax year in which they are made.

Riverfront's Traditional IRA allows you to easily save for your retirement by offering:

▪ Low minimum deposits - begin investing with just $1.
▪ Easy contribution options - Make deposits through payroll deduction, direct deposit through the mail or in person.
▪ Fee free account - Pay no annual fee or enrollment fees for this account.
▪ Competitive interest rates which are compounded monthly.

To be eligible to open a Traditional IRA an individual must have earned income and be younger than 70 ½ years of age.

You may contribute any amount up to 100 percent of your earned income or $4000 for 2006, whichever is less. Individuals age 50 and over can make an additional "Catch Up" contribution of $1000 for an annual total of $5000.

IRA's for a taxable year can be opened and/or funded anytime between the first day of the tax year and the date a tax return is due for that year, excluding extensions. For most taxpayers this due date is April 15 of the following year.

Traditional IRA earnings remain tax deferred until you make withdrawals from the account. They are then taxed as income in the year they are withdrawn.

You must begin to make required minimum distributions from your Traditional IRA at age 70 ½ or risk additional tax penalties.

To start investing with Riverfront, Contact Us for an application.

For specific information regarding IRA rules and regulations and how they may apply to your individual circumstances you are encouraged to consult your tax or legal professional. Riverfront cannot offer tax or legal advice.

Investment Disclosure

IMPORTANT NOTICE TO MEMBERS WHO HAVE A MONEY MARKET, TRADITIONAL/ROTH IRA, OR A COVERDELL EDUCATION SAVINGS SHARE ACCOUNT

The credit union is amending the dividend rate structure on the Money Market, Traditional/Roth IRA and Coverdell Education Savings (CESA) Share accounts. Effective September 1, 2007, the credit union will calculate dividends on these accounts using a tiered rate structure. The accounts will earn a dividend rate based on the tier in which the account balance falls each day, as shown in the charts below. Beginning next month, the Rate Chart in this newsletter will list the corresponding APYs for these tiers.