Maximize Your IRAs

It’s All In the Numbers

Making the maximum annual contribution into your Individual Retirement Account(s) (IRAs), may benefit you at tax time. The following example illustrates this point:

We have competitive rates that will keep your money working towards your retirement goals. If you don’t yet have an IRA, stop by the Credit Union and we’ll get you set up!

There’s still time for you to invest the maximum amount – $5000 for those under 50, $6,000 if you’re age 50 or over – so make sure you see us today.

Direct Deposit Your 2009 Tax Refund

It’s almost tax season! That means that you can have your tax refund directly deposited into your Credit Union account quickly, easily, and FOR FREE!

According to the IRS, a refund check is issued within six to eight weeks of filing a paper return. If you file a paper return, and choose to directly deposit your refund, you will receive your refund in five to six weeks. If you electronically file (E-file), your refund will be issued within three weeks of filing. However, if you choose to E-file and choose direct deposit for your refund, the IRS says you should receive it within 14 days.

To elect direct deposit of your tax refund into your Credit Union account, simply provide your tax preparer with your account number and our ABA routing #231980944. If you E-file, you can always check the status of your refund online at www.irs.gov. To check your refund status, you will need your social security number, filing status, and refund amount. Also, remember to keep your 2009 year-end statement from the Credit Union for tax reporting purposes.

Time for a Change?

Notify the Credit Union if you change your address or name so we can keep accurate records. In the case of an address change, statements and other credit union communication can be returned.

For an Address Change
Provide your new address in writing with your account number to us by mail or in the office. Notifying the post office will only temporarily forward your mail.

For a Name Change
Always notify the Social Security Administration of your change so that your earnings will be credited properly. Bring updated identification into the Credit Union so we may update our records and place your new signature on file.

Call the Credit Union office if you have further questions about changing your account information.

What the New Credit Card Changes Mean for YOU

Earlier this year, the government passed the Credit CARD Act of 2009. This legislation is designed to protect consumers just like you. The provisions of this act regulate financial institutions’ lending practices.

While most of the changes affect the internal processes of the credit card issuer, here are just some of the changes that may affect you:

• Credit card issuers will be required to give cardholders 45 days’ notice before raising interest rates or making other signifi cant changes to a card plan’s terms. However, this does not apply to certain credit card plans, such as a variable rate plan or a promotional rate that was disclosed upfront.
• Cardholders will have the option to decline this new rate and pay off their balance over time under the original rate.
• Issuers must begin sending bills 21 days before a payment is due.
• Credit card issuers won’t be able to raise rates on existing balances unless a consumer is at least 60 days late.
• No more double-cycle billing. This process is when a late-paying customer is assessed interest on a prior month’s balance that has been paid in full.

Many of these changes will not go into effect until February 2010, but the Credit Union wants you to be prepared. If you have any further questions regarding the new laws, please contact us.

Share Insurance Coverage Extended

For your protection, the funds in your Credit Union are insured by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the United States Government. The standard maximum insurance amount (SMSIA) was previously $100,000. In 2008, as part of the government’s efforts to stabilize the economy, the SMSIA was increased to $250,000 until December 31, 2009.

This year, the “Helping Families Save Their Homes Act of 2009” has extended the time frame for this temporary increase to the SMSIA. The increase to $250,000 is now valid until December 31, 2013.

The higher SMSIA applies to all types of share accounts, including regular shares, share drafts, money market accounts, and share certifi cates. The maximum coverage of $250,000 for Individual Retirement Accounts and Keogh Accounts remains unchanged and is not subject to a December 31, 2013 expiration date.

For more information, visit the National Credit Union Association’s web site at www.ncua.gov and download the consumer share insurance tool kit.

Holiday Closings

Monday, January 18, 2010 • Martin Luther King, Jr. Day
Monday, February 15, 2010 • President’s Day

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