Share Rates
Share rates effective as of January 7, 2009
Rates subject to change based on earnings and declared by the Board of Directors at quarter end

Regular Share Accounts (Inc. Trust, Vacation, Organization)

Balance	Rate	APY*
$25.00 - $25,000.00	0.75%	0.75%
$25,000.01+	1.00%	1.00%

Money Market Account

Balance	Rate	APY*
$2,500- $25,000.00	1.75%	1.75%
$25,000.01+	2.25%	2.25%

Additional Share Accounts

Share / Savings	Rate	APY*
Holiday Club Account	1.00%	1.00%
IRA $0- $25,000.00 (07/01/08 to 12/31/08)	2.50%	2.50%
IRA $25,000.01+ (07/01/08 to 12/31/08)	2.75%	2.75%
Summer Living Account	1.52%	1.52%

* Annual Percentage Yield

Share Certificate Rates
Share certificate rates effective January 7, 2009

$500 Minimum

Term	APY*
6 Months	2.43%
12 Months	2.53%

$50,000 Minimum

Term	APY*
6 Months	2.53%
12 Months	2.63%

* Annual Percentage Yield

IRA Comparison
A quick reference on the key differences among Roth, Traditional, and Education IRAs…

	Roth	Traditional	Coverdell Education Savings (EAS) ***
Who can contribute?	Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation) with the following MAGI:* For 2008 Up to $101,000 (single filers) Up to $159,000 (joint filers) For 2009 Up to $105,000 (single filers) Up to $166,000 (joint filers) Reduced contributions allowed for higher incomes For 2008: up to $116,000 for single filers and $159,000 for joint filers For 2009: up to $120,000 for single filers and $176,000 for joint filers	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 received a distribution from a qualified retirement plan and decides to roll over the proceeds of the plan into an IRA	Anyone who has MAGI* Up to $95,000 (single filers) Up to $190,000 (joint filers) Some people with higher MAGI may be able to make smaller contributions Contributions not allowed after the beneficiary reaches age 18 (except for special needs beneficiaries)
How much can I contribute?	$5,000 for 2008-2009 For owners age 50 and older, your limits increase to $6,000 for 2008-2009 Cannot exceed compensation Reduces contributions that can be made to traditional IRAs	$5,000 for 2008-2009 For owners age 50 and older, your limits increase to $6,000 for 2008-2009 Cannot exceed compensation Reduces contributions that can be made to Roth IRAs	$2,000 per child each year Limit applies to all Coverdell Education Savings Accounts (ESA) for the same child
Who can make deductible contributions?	No one can deduct contributions	Fully-deductible contributions: Single individuals not active in employer retirement plans Single individuals active in employer retirement plans with MAGI* of less than $53,000 for 2008 and $55,000 for 2009 Married couples with neither spouse active in an employer retirement plan Married individuals active in employer retirement plans with joint tax returns showing joint MAGI* of less than $85,000 for 2008 and less than $89,000 for 2009 Married individuals not active in employer retirement plans with spouses who are, as long as MAGI* is less than $159,000 for 2008 and less than $166,000 for 2009	No one can deduct contributions
What are the tax advantages?	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 withdrawls at age 70 1/2	Earnings grow tax-deferred until withdrawn Contributions may be tax-deductible	Withdrawals for certain qualified education expenses are tax-free Qualified education expenses include tuition, fees, books, computer equipment and technology required for elementary, secondary and post-secondary education A beneficiary may receive tax-free distributions from a Coverdell ESA in the same year he or she claims the Lifetime Learning or HOPE Scholarship tax credits
When can I withdraw without restrictions?	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 a first-time home purchase**	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	Withdrawals are tax- and penalty-free only for qualified education expenses (earnings are subject to tax and penalty for most other withdrawals) Funds can be transferred from one child's account to an account for another child in the family

(Not intended as tax advice, please contact a tax professional)
*   MAGI - modified adjusted gross income from the federal tax form
**  Lifetime limit for exemption on first-time home purchase is $10,000
*** Formerly known as the Education IRA

More information on the advantages of various types of IRA accounts is available in the credit union office.
For example, iIf you want to save on taxes now, a traditional IRA is a smart choice. Especially if you think you'll be in a lower tax bracket when you retire. If you would rather save on taxes when you retire, and flexibility in withdrawing funds is important, choose a Roth IRA.

Our IRA professionals here at Gates Chili Federal Credit Union are happy to answer your questions. Call us today at (585) 247-1090.

Computation and Penalties
Dividends on Savings Accounts, Holiday Club Accounts, Certificates of Deposit and Individual Retirement Accounts are paid and compounded quarterly.

For the current period, dividends on Checking Accounts will not be paid.

Dividends on Money Market Accounts are paid and compounded monthly.

There are withdrawal restrictions on Holiday Club Accounts, Certificates of Deposit and Individual Retirement Accounts. Contact the credit union for details.

Membership in our credit union is maintained by keeping a minimum of $25 in a primary share account.

NCUA Insured
Savings and checking accounts in our credit union are insured to $100,000 by the National Credit Union Administration, an agency of the United States Government which has never cost taxpayers one cent.