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~ CHANGES ARE COMING ~

Are you currently using DCFCU's Home Banking?

 If so, you will see some exciting changes beginning on June 11, 2009 in the display of your accounts and information. The new look will make access even easier than before and  as always your information is available 24 hours a day 7 days a week. If you are not currently set up to use Home Banking or Bill Pay please call or come by our branch and let one of our friendly representatives assist you.

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IRA AND ROTH ACCOUNTS 

THE IRA RULES

You can contribute up to $4,000 to an IRA for the 2005 or 2006 tax year. This maximum is scheduled to increase to $5,000 in 2008 and to increase in $500 incremental adjustments after that.

If you’re age 50 or older, you can also contribute an extra annual amount to an IRA. This catch-up contribution amount is $500 for the 2005 tax year and is scheduled to increase to $1,000 for 2006 and thereafter. You’re eligible to make a catch-up contribution anytime on or after January 1st of the year in which you’ll reach age 50.

Note that you can only contribute a combined total of up to the annual maximum to a traditional IRA or Roth IRA. So for example, for the 2006 tax year you cannot contribute $4,000 to a traditional IRA and then, if you qualify, another $4,000 to a Roth IRA.

In addition, if your annual compensation (as defined below) is less than the annual contribution maximum, you can only contribute up to that amount. These maximums don’t count rollover or conversion amounts or contributions to a SEP–IRA or SIMPLE IRA. 

 Maximum for married couples

If you’re married, the maximum combined total you and your spouse can contribute to separate IRAs for the 2005 tax year is $8,000. (Or up to the combined compensation of you and your spouse for the tax year, if that amount is less than $8,000.)

If you’re a spouse with little or no compensation and you file a joint tax return, you‘re eligible to contribute up to the annual maximum to your own spousal IRA. (You cannot own IRAs jointly.)

If you and your spouse are both age 50 or older, the maximum combined total you can contribute for the 2005 tax year, including catch-up contributions, is $9,000.

What compensation means

In general for IRA purposes, compensation is earned income from working -– including wages, salary, tips, commission, and self-employment income -- as opposed to investment or pension income, for example.

If you’re not working you’re not eligible to contribute to an IRA, unless you file a joint return with a spouse who is working, or unless you receive alimony.

 EDUCATIONAL SAVINGS ACCOUNTS

Contribution limits--You can contribute up to $2,000 a year to an education savings account. A child can have more than one education savings account, but the total contributions in aggregate to all accounts cannot exceed $2,000 a year.  You can contribute up to the $2,000 limit for each of your children. So for example, if you have two children you can contribute $2,000 to a separate education savings account for each of them.

Contribution deadlines--You can contribute to an education savings account anytime after a child is born until the child’s 18th birthday, although you don’t have to make a contribution every year. You can continue to make contributions beyond age 18 for special needs beneficiaries.  The contribution deadline for a given tax year is generally April 15th of the following year.

Qualifying investments--You can invest your contributions in any qualifying investments available through the education savings account custodian, including certificates of deposit/share certificates.  Life insurance is not a qualifying investment.

Contributions and related tax breaks--If you’re eligible, you can claim the Hope credit or Lifetime Learning credit in the same taxable year you take qualified withdrawals from an education savings account for the same student. The credit and the withdrawal have to be used for different education expenses, however.  If you’re eligible, you can make a contribution to both an education savings account and a 529 college savings program for the same beneficiary in the same tax year.  Contributions to an education savings account are eligible for the gift tax exclusion.

Education savings accounts offer you a tax-free way to save up to $2,000 a year for your child’s or other student’s qualified elementary, secondary, and college expenses. (Education savings accounts were previously called education IRAs.)

Although contributions are not tax deductible, earnings accumulate tax deferred and withdrawals to pay for qualified education expenses are tax free.

The eligibility rules

Parents, grandparents, family, friends, and anyone else who meets the income limits -- including children themselves -- are eligible to contribute to an education savings account. If your income exceeds the eligibility limits, you can gift money to a child and he or she can make the contribution (assuming the child meets the income limits).

Modified adjusted gross income limits

Eligibility is based on your modified adjusted gross income, which is generally the same as your adjusted gross income as figured on your federal income tax return. (If you excluded any income earned abroad or from certain U.S. territories or possessions, you must add those items back to your income.)

• If you’re a single taxpayer and your income is under $95,000, you can contribute up to $2,000. If your income is between $95,000 and $110,000, you can make a partial contribution.
• If you’re a married taxpayer and file jointly and your joint income is under $190,000, you can contribute up to $2,000. If your income is between $190,000 and $220,000 you can make a partial contribution.

PURCHASE OR REFINANCE A HOME THROUGH YOUR CREDIT UNION  

YOUR CREDIT UNION AND CU WEST MORTGAGE have combined their credit union knowledge and explored ways to adapt mortgage related technology to meet the needs of credit union members.

WE’VE ELIMINATED TRADITIONAL PAPERWORK AND RED TAPE in favor of a few clicks and a few questions.

TAKE THE GUESSWORK OUT OF PRODUCT AND RATE SELECTION. The Loan Consultant feature determines the products and rates that match YOUR needs.

And with ‘STATUS SWEEP’ we keep you up to date on the progress of your application 24/7 by just accessing the Internet.

Ø    Purchase or Refinance

Ø    Pre-Approvals Available

Ø    Jumbo Loans

Ø    1^st time Buyer Program Specialist

Ø    CalPERS & STIRS

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