Issue link: http://read.dmtmag.com/i/52434
Happy New Year! Resolving to Save More in 2012? Here's What You Need to Know ... For those still working and fi ling tax returns, it's time to think about starting or adding to an NCSF IRA annuity for 2011 and 2012. Tax-time IRA contributions can lower your taxes as well. For those already retired, starting or adding to a regular NCSF non-qualifi ed annuity is an opportunity to move funds out of low interest rate CDs to the higher rates NCSF annuities pay (see the NCSF annuity interest rate table on page 26). Making the switch early means the funds will have the entire year to earn that higher interest so your funds have more time to grow. Since January 1st comes around only once a year, it can be diffi cult to remember the rules associated with annuities. Following below are answers to the questions members frequently ask about NCSF annuities, IRA annuities, and other topics related to saving. Perhaps you will fi nd the answer to the question that has been on your mind. NON-QUALIFIED ANNUITIES Q. I am retired and do not have income from employment, what options do I have for saving? A. You can contribute to an NCSF non-qualifi ed annuity at any age, regardless of your income or other eligibility requirements associated with IRAs. Note. Non-qualifi ed annuities are a perfect alternative or supplement to IRAs. Funds grow tax-deferred and you can contribute any amount. While you still pay a penalty tax on withdrawing funds prior to age 59½ you are not required to withdraw funds at a certain age. 24 Q. I currently have funds invested in a CD that is paying a low interest rate and is maturing shortly. Can I transfer the money to an NCSF annuity or NCSF IRA annuity? A. Yes. There are two ways you can transfer the funds: withdraw the funds yourself and then send NCSF a personal check, or arrange for the bank to directly transfer the funds to an NCSF IRA annuity. To request a "Direct Transfer" of your funds, call an NCSF insurance producer or the Home Offi ce to request a transfer of funds form. Note. A direct transfer greatly simplifi es the process and means less for you to worry about. Talk to your tax advisor or NCSF insurance producer about the advantages of a direct transfer. INDIVIDUAL RETIREMENT ACCOUNTS (IRAs) Q. How much can I contribute to an IRA for 2011 and 2012? A. According to the IRS website, www.irs.gov, individuals who have income from employment can contribute 100% of their earned income up to a maximum of $5,000 in 2011 and 2012 to their IRAs. Individuals age 50 and older can contribute an additional $1,000 for a total of $6,000. National Catholic Forester