Help for Your Future

With help from First Northern, your financial future doesn’t have to be so scary. We’re happy to offer some retirement savings options that come with certain tax advantages.

Of course, we encourage you to seek the advice of a certified tax advisor to get all the best advice available, but for your convenience the chart below outlines the benefits of Traditional and Roth IRA savings plans. Take a minute to review each and then stop in at your local First Northern branch and let one of our Financial Services Advisors help you set up the plan that’s right for you.

All the programs offered by First Northern are available as IRA Share Certificates or IRA Daily Shares and, as is the practice with all our accounts, your Individual Retirement Account is federally insured by the NCUA (National Credit Union Administration), an agency of the U.S. Government, for up to $250,000.

Locate the First Northern Branch nearest you or contact a Financial Services Advisor at 888.328.8677. Set up an IRA with First Northern and discover the benefits of membership.

Questions Traditional Roth

Who can contribute?

Anyone under the age of 70 ½ who has income from compensation (or who is filing jointly with a spouse who earns compensation).

Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation) with the following adjusted gross income:

  • Up to $114,000 (single filers)
  • Up to $181,000 (joint filers)

Reduced contributions allowed for higher incomes ($114,000 / $191,000

How much can I contribute?

$5,500 for 2013 and 2014. Higher limit if age 50 or older. Cannot exceed compensation. Reduced by contributions to Roth IRAs.

$5,500 for 2013 and 2014. Higher limit if age 50 or older. Cannot exceed compensation. Reduced by contributions to Traditional IRAs.

Who can make deductions?

Fully deductible contributions:

  • Single individuals active in retirement plans with MAGI (modified adjusted gross income) of $60,000 or less
  • Married couples with neither spouse active in an employer retirement plan (regardless of income)
  • Married individuals active in employer retirement plans with joint tax returns showing MAGI of $96,000 or less
  • Married individuals not active in employer retirement plans with spouses who are, as long as MAGI is $181,000 or less

No one can deduct contributions.

What are the tax advantages?

Earnings grow tax-deferred until withdrawn. Contributions may be tax-deductible.

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 these reasons: Age 59 ½, disability, death or first-time home buyer purchase.

When can I withdraw without restrictions?

Withdraw penalty-free for any of the following reasons:

  • Qualified higher education expenses
  • First-time home purchase
  • Age 59 ½
  • Disability
  • Qualifying medical expenses exceeding 7.5% of adjusted gross income
  • Payment to beneficiaries upon the owner’s death
  • Payment of health insurance premiums while unemployed for 12 weeks or longer

Earnings are tax-free if account is open for five tax years and withdrawn for a qualified reason (age 59 ½, disability, death, or first-time home purchase).

Not required to start withdrawals at age 70 ½.