IRAs

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Individual Retirement Accounts

Individual Retirement Accounts (IRAs) can be very confusing, especially since there are varieties of types to choose from. Here are the types of IRAs that Carolina Postal CU offers:

Traditional IRA
An account that allows you to defer taxes on your earnings until they are withdrawn. Certain contributions are tax-deductible in the tax year for which they are made. Some age, withdrawal, and contribution limitations apply.

Roth IRA
Contributions are nondeductible and feature tax-free withdrawals for certain distribution reasons after a 5-year holding period. Contributions are made on an after-tax basis. People who expect to be in a higher tax bracket when they retire may benefit more from this account. Some contribution and withdrawal limitations apply.

Coverdell Education Savings IRA
Contributions are also nondeductible. This account features tax-free withdrawals for a very specific purpose only: a child's higher education expenses. Qualified higher education distributions are penalty and tax-free (Traditional/Roth offer penalty-free only). Some contribution and withdrawal limitations apply.

Consult your tax advisor regarding the deductability of interest.

If you have questions about IRAs please contact an Account Manager

Charlotte (704) 392-3418

Winston-Salem (336) 723-1024

High Point (336) 882-3926.

We are more than happy to assist you.

You may also want to contact your tax advisor for additional information and guidance on

which IRA is best for you.

Special Note: IRA Insurance Coverage Increase - Effective April 1, 2006, NCUSIF coverage of IRA accounts increased from $100,000 to $250,000. This is in addition to the $100,000 coverage in place for most other accounts at Carolina Postal Credit Union.

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