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IRAs

First Northern offers a variety of ways to save for the future with IRAs. Enjoy certain tax advantages when you open the following types of IRAs: Traditional, Roth or Roth Conversion. All are available as IRA Share Certificates or IRA Daily Shares.

The chart below highlights the differences between the Traditional and Roth Accounts. Information about the Roth Conversion IRA is featured below the chart. As with any tax-related concern, consult with a tax advisor.
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Comparison of Traditional and Roth IRAs
QUESTIONS: TRADITIONAL ROTH

WHO CAN CONTRIBUTE?

Anyone under age 70 1/2 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 modified adjusted gross income:
• Up to $101,000 (single filers)
• Up to $159,000 (joint filers)
Reduced contributions allowed for higher incomes (up to $116,000 for single filers and $169,000 for joint filers).

HOW MUCH CAN I CONTRIBUTE?

$5,000 for 2008 and 2009 ($1,000 additional for 50 years and older for a total of $6,000)

$5,000 for 2008 and 2009 ($1,000 additional for 50 years and older for a total of $6,000)

WHO CAN MAKE DEDUCTIBLE CONTRIBUTIONS?

Fully deductible contributions:
• Single individuals not active in employer retirement plans (regardless of income)
• Single individuals active in employer retirement plans with MAGI of $50,000 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 $70,000 or less.
• Married individuals not active in employer retirement plans with spouses who are, as long as MAGI is $150,000 or less.
Individuals with incomes exceeding the above limits may be able to deduct an amount that is less than the amount that can be contributed.

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Earnings grow tax-deferred until withdrawn.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Regular contributions can be withdrawn tax- and penalty-free at any time.
After the account has been open five tax years, earnings can be withdrawn tax- and penalty-free for any of these reasons: Age 59 1/2, disability, death, or first-time home purchase.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 1/2.
• 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 1/2, disability, death, or a first-time home purchase).

Not required to start withdrawals at age 70 1/2.

MAGI = Modified Adjusted Gross Income
Federally insured by NCUA.


Your savings are federally insured by the NCUA (National Credit Union Administration), an agency of the U.S. Government, for up to $250,000 per member with a separate coverage of $250,000 for Individual Retirement Accounts. First Northern also provides additional private share insurance of $250,000 through Excess Share Insurance.

What is a Roth Conversion IRA?

A Roth Conversion IRA is an account established by transferring traditional IRA funds to a Roth IRA. It offers tax-free withdrawals to eligible investors. Holders of converted accounts must pay taxes on prior contributions to the traditional IRA that have been deducted previously, and on accumulated earnings, as well.

Deciding whether to convert your traditional IRA to a Roth IRA is a complex decision.
You must weigh whether the future potential tax savings offset paying taxes now.

Consult your tax advisor for details.

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IRA Forms
Traditional IRA
Existing with First Northern

Traditional IRA Contributions*

Traditional IRA Rollover And Transfer*

Traditional IRA Direct Transfer Instruction*

Traditional IRA Beneficiary Change*

Traditional IRA Withdrawal*

IRA Post 70-1/2 Payment Election*


 Traditional IRA
Opening New with First Northern

Traditional IRA Application*

Traditional IRA Contributions*

Traditional IRA Rollover And Transfer*

Traditional IRA Direct Transfer Instruction*
Roth IRA
Existing with First Northern

Roth IRA Contributions*

Roth IRA Rollover And Transfer*

Roth IRA Direct Transfer Instruction*

Roth IRA Beneficiary Change*

Roth IRA Withdrawal*


 Roth IRA
Opening New with First Northern

Roth IRA Application*

Roth IRA Contributions*

Roth IRA Rollover And Transfer*

Roth IRA Direct Transfer Instruction*

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