Grants for Affordable Housing Projects Now Available

BECU recognizes that for most people homeownership provides the foundation for financial security. We also understand that affordability is the biggest issue many face when it comes to finding a home. To help overcome this obstacle, BECU is investing in the work of non-profit organizations to prevent home loss and sustain affordable housing.

Grants for Non-Profit Organizations Committed to Affordable Housing Starting March 1, 2010 through May 14, 2010, BECU is accepting Request for Proposals (RFPs) from local non-profits for the chance to be awarded one of four potential $20,000 grants for affordable housing projects and/or programs that support these efforts. The project and/or program will need to serve Western WA in at least one of the following six counties:

• King
• Pierce
• Snohomish
• Kitsap
• Skagit
• Thurston

Eligibility
Applicants must be a 501(c)(3) registered non-profit with affordable housing as part of their mission and/or focus.

For more information on how to submit your proposal, view the RFP.

Make Sure Your Retirement Reaches Your Expectations

Opening a BECU IRA is a wise way to supplement your retirement income—even if you already contribute to a 401(k). An IRA will help you safely accumulate a nest egg for your retirement years. It's also another way to diversify and supplement funds that you have invested for your retirement.

There are many different types of accounts within the world of IRAs, however Traditional and Roth IRAs are the most common choices. Get more information on both by visiting BECU IRAs.

Please Note: The deadline for 2009 IRA contributions is April 15—you still have time.

Save as much as you can as early as you can.
Though it's never too late to start, the sooner you begin saving, the more time your money has to grow. Earnings each year build on the prior year's—that's the power of compound interest, and the best way to accumulate wealth.

Benefits of Starting Early*

* Hypothetical example is based on $5,000 annual IRA contributions made on January 1 each year. Assumes average annual rate of return of 6%, monthly compounding, and consisting of insured and non-insured investments. It does not factor in any potential tax savings for a tax deductible IRA.

Visit our IRA Center Online
The BECU IRA Center is designed to help members plan for their retirement goals. Whether you’re planning on opening an IRA or already have an IRA, it provides practical ideas you can use to work towards financial security in retirement. The comprehensive “Learn” section is designed to help you in the decision making process. AND the interactive forms, step-by-step guide, and eSignature process makes it easy.

Questions?
You can open an IRA* in person or online at The BECU IRA Center. If you have any questions, visit us online or call 206-439-5700 or 800-233-2328 or visit one of our Neighborhood Financial Centers.

* $100 minimum opening deposit when the Add-To feature is established on IRA; otherwise the minimum is $500.

Free Related Seminars
Retiremen t Plan Distribution
Retiremen t Investment Strategies
Making the Most of IRA Opportunities
How to Avoid Costly IRA Estate Planning Mistakes

Save Money When You Buy BECU-Owned Home or Auto

Whether you are a first-time or experienced buyer looking for a great value on a home or auto, we have a wide-ranging selection for you to choose from.

These days everyone is looking for ways to stretch dollars. Our specially-priced homes and autos can help you maximize the value of your dollar. Here are a few money-saving benefits you receive when you purchase a home or auto from BECU:

>> Low competitive rates

>> No origination or discount fees

>> No pre-payment penalty

>> No hidden fees or surprises

>> Quick user-friendly online application

Homes for Sale
BECU homes for sale are located throughout the Puget Sound region and range in value and size. Visit BECU Homes for Sale to view our up-to-date listings with pictures and home details. BECU offeres complete home buying services to help you along the way to homeownership.

Autos for Sale
Whether you are looking for a commuter car, minivan, truck or SUV, we can help. To view a listing of autos, visit BECU-Owned Autos. If you don’t see what you’re looking for here, we have thousands of other vehicles available to you through our preferred dealerships.

Work with someone you know and trust
We are a local not-for-profit credit union—earnings are returned to our members in the form of better rates, lower fees and more options. If you are going to purchase a home or boat, work with a credit union that you know and trust. We encourage you to take advantage of the products and services that come along with membership at BECU.

Help Your Special Needs Child with a Special Needs Trust

Government benefits such as Medicaid and Supplemental Security Income (SSI) can be vital sources of support for your child with special needs. Because these government programs are based upon economic need, your child will become ineligible for these benefits if his or her own assets exceed two thousand dollars, the limit that applies in most states. Even a small inheritance or gift may push your child’s assets over the limit, resulting in the loss of government support.

Supplement Government Benefits
Government benefits typically provide only the most basic support; they will not subsidize items and services considered nonessential. Your child’s personal assets and the small allowance for personal care received under government eligibility in most cases, is not enough to pay for necessary items such as eye glasses, dental care, rehabilitation services, home health aide services as well as personal services such as transportation, computer equipment and vacations.

If you want to provide funds that can be used to supplement government benefits, while preserving your child’s eligibility, consider establishing a Special Needs Trust. A properly executed Special Needs Trust is not considered as personal assets of your child and won’t put into jeopardy his or her eligibility. To ensure that trust assets are unavailable to the beneficiary, the trustee must have sole discretion over the distribution of trust income and principal. The beneficiary must have no control over the trust and no right to demand distributions from the trust. The trustee should purchase goods and services directly on the beneficiary’s behalf, instead of giving the beneficiary the money directly from the trust to purchase the items needed.

Things to Consider
If you are considering a Special Needs Trust, consider the following basic rules, keeping in mind requirements vary according to state law and the type of Special Needs Trust that is being established:

• Typically, only a parent, grandparent, legal guardian, or court can set up a special needs trust
• Funds in the special needs trust cannot be available to the beneficiary
• The beneficiary cannot revoke the trust
• The individual with special needs must be considered “permanently and totally disabled” under SSI criteria. Different rules apply to children and adults
• The Special Needs Trust must contain language forbidding the trustee to make payments or distributions that might interfere with government benefit eligibility, such as making payments directly to the beneficiary
• Special Needs Trusts can hold an unlimited amount of funds and can be added to at any time

An attorney experienced in planning for children with special needs can draft a comprehensive estate plan to make sure that your child is well provided for. If you already have an estate plan in place, you should have all your existing legal documents reviewed, and if necessary, revised to ensure that they address your family’s specific needs.

Questions?
Please contact BECU Trust Company* at 206-812-5176 or 800-233-2328 ext. 5176 or at BECUTrust@becu.org for additional information.

The information is for informational purposes only and is not intended to provide specific financial, investment, tax, legal, accounting or other advice for you, and should not be relied upon in that regard. You should not act or rely on the information without seeking the advice of a professional. Your advisor can help to ensure that your own circumstances have been properly considered and that action is taken on the latest available information.

2010 Required Minimum Distribution Changes to Your IRA

Are you currently or turning 70½ years of age in 2010 and have an IRA? (Individual IRA, employer plan, or small business plan) Did you waive your Required Minimum Distributions (RMD) in 2009?* Although you could choose to withdraw any amount from your retirement account, no withdrawal was required in 2009. Also, the waiver for the RMD rules was effective only for the 2009 tax year.

Our LPL Financial Advisors** can help you prepare for the return of required minimum distributions and help you determine if you have enough to retire and the tax implications.

>> How much do you need to withdraw to satisfy the RMD from your IRA account in 2010?

>> How does the 2009 RMD waiver affect an account owner who may have turned 70½ years of age in 2009?

>> If I did not take my lump sum distribution RMD Service outright in 2009 and wish to restart either a systematic or submit new instructions simply to change my next scheduled distribution to a date in 2010, what do I need to do and how is the RMD calculated?

Challenging economic times and hectic schedules can prevent you from re-visiting your current plan. Retirement planning has to be an ongoing process that is regularly updated to reflect changes to your situation and to the economic and market environments. Now is a good time to step back and revisit the objectives and strategies you set for your retirement plan. Let one of the Financial Advisors* provide sound unbiased financial investment advice you can rely on. Contact us for a complimentary, one-on-one confidential consultation by calling 206-439-5720 or 800-233-2328 ext 5720 or visit BECU Investment Services.

*For information regarding IRS Special Rule 2009 for the Worker, Retiree, and Employer Recovery Act of 2008 signed into law by the President on December 23, 2008, visit IRS.gov. The Act waives 2009 Required Minimum Distributions (RMDs) from Individual Retirement Arrangements (IRAs), 401(k), Profit-Sharing, Money Purchase Pension, 403(b), and certain 457 retirement plans.

**Financial Advisors do not provide tax advice. Consult with your attorney or tax advisor regarding specific tax issues incurred by Roth conversion or RMD requirements.

Securities, Advisory Services and Insurance Products offered through LPL Financial and its affiliates, Member FINRA/SIPC. BECU is not a registered broker/dealer and has a brokerage affiliate arrangement with LPL Financial. Investments are: Not NCUA/NCUSIF INSURED, May Lose Value, Not Credit Union Guaranteed, Not obligations of BECU. Branch Office located at BECU, 12770 Gateway Drive, Tukwila, WA.

New Rules for Roth IRA Conversions in 2010

Starting this year, the $100,000 adjusted gross income limit for conversions to Roth IRAs is permanently repealed. From 2010 onward, all taxpayers, regardless of income, can convert to Roth IRAs.

Anyone, regardless of income level, may be eligible to convert all or a portion of their Traditional IRA or employer-sponsored plan to a Roth IRA in 2010. Some of the advantages may include tax-free distributions, and no required minimum distributions or age and income limitations. Experts are saying this legislative change may become the single most powerful estate building and wealth transfer investment vehicle.

Also, for conversions occurring in 2010, as a taxpayer you have the option to report one-half of taxable income in 2011 and one-half in 2012 or the full amount in 2010. After 2010, conversions must be reported in full in the taxable year in which they are made.

Attend a Free Seminar
We invite you to attend a free seminar to help answer any questions you may have regarding the Roth IRA rule changes of 2010.

More free IRA seminars

Visit BECU at the Northwest Women’s Show, March 5-7

BECU is a proud sponsor the 22nd Annual Northwest Women's Show and we hope you can join us for the festivities—just look for the BECU Mobile Branch onsite.

Where: Qwest Field Event Center in Seattle
When: March 5-7

Attendees can shop, sample and gather information from over 500 businesses and services specifically catering to the needs of women. BECU will host a free seminar and chat session to help answer any financial questions you may have.

Questions?
Get more information on exhibitors and show events by visiting Northwest Women’s Show.

Turn Everyday Purchases into Valuable Points with BECU Rewards

Earn points toward valuable rewards every time you use your low rate personal or business credit card from BECU. With the BECU Rewards program, you can turn everyday purchases like groceries, gas, movie tickets or even recurring monthly bills into valuable rewards points. For a low Annual Participation Fee of just $25, the BECU Rewards program offers an amazing selection of dining, shopping, entertainment and travel rewards so that you get the freedom of flexibility and choice.

With the BECU Rewards program, you’ll find your favorite brands—offering a wide range of gift cards and merchandise options. You can also donate points to a participating charity or redeem points for Cash Back, using the Rewards My Way feature, on purchases you’ve made using your BECU credit card.

You’ll have flexibility when you redeem points for travel as well. With our flexible airline program, there’s no 21-day advance purchase, Saturday night stay or Round-trip requirements.

It's easy and convenient to view and redeem your Rewards points online. It's free and secure, and the information is as accurate as what you'd receive by calling us directly. In addition to viewing your account activity, you can search for available gift certificates, merchandise and charity options, as well as search and book your own travel itinerary online.

You can enroll for the BECU Rewards when you apply for a low-rate personal or business credit card from BECU. You can apply online, by telephone or at any BECU location.

You can also add the BECU Rewards Program to your existing BECU credit card account by calling
206-439-5700 or 800-233-2328.

Destroy Your Personal Documents Safely at BECU’s Free Shredding Event

BECU is sponsoring a free shredding day where you can safely destroy your documents containing sensitive and personal information. A professional document destruction service with a mobile shredding unit will be at each location. Experts will also be on hand to teach you the most effective tips on fighting identity theft and fraud.

When:
Saturday, April 17, 2010
10:00am – 1:00pm

Where:
Tukwila Financial Center Parking Lot
12770 Gateway Drive, Tukwila

Everett Financial Center Parking Lot
11127 Evergreen Way S, Everett

Federal Way Pavilions Neighborhood Financial Center
31411 Pacific Hwy S, Federal Way

What’s the cost?
It’s free! You may bring up to three grocery bags or two banker boxes full of paper.

Helpful ID Theft Services and Resources

BECU takes the security of your account(s) seriously. We use industry-leading standards to help keep your account and personal information safe. There are also some things you can do to help protect yourself. Here are a few services we offer that can help protect you from becoming a victim of fraud:

1. You can place a codeword on your accounts with BECU for additional protection. In the event you call in or visit us in person, this additional security question will be asked in conjunction with our standard questions.
2. BECU Card Protect program offers members free online purchase security protection through MasterCard SecureCode and Verified by Visa. These programs protect your BECU Debit MasterCard and BECU Visa credit card from unauthorized purchases when shopping online. You create private passwords to verify online purchases and you'll use these passwords each time you complete an online purchase with a participating merchant.
   >> Register now to create your MasterCard SecureCode password
   >> Register now to create your Verified by Visa password or manage your account
3. Protect yourself from ID Theft with the Deluxe ID TheftBlock® Program. This program will provide you with expert assistance should identity theft occur. Deluxe can help document the damage and restore your accounts and reimburse you for certain expenses.

With ID TheftBlock® you’ll be protected by the following services:

• Membership kit and initial credit report
• Credit monitoring and alerts
• Check order screening
• Fraud resource center
• ID Theft insurance

The cost is only $4.49 per month and will be debited from your BECU checking account. You can cancel this service at anytime by calling Deluxe Financial Services at 800-839-9193.

Sign up for Deluxe ID TheftBlock®

Reporting Fraud
If you have been the victim of ID theft or credit fraud here’s how you can report your claim:

1. Report email phishing to BECU at phishing@becu.org
2. Report it to the Federal Trade Commission or phone 877-IDTHEFT
3. Report fraud to these three credit bureaus:
   >> Equifax To report fraud, call: 888-766-0008 and write: P.O. Box 740241, Atlanta, GA 30374-0241
   >> Experian To report fraud, call: 888-EXPERIAN and write: P.O. Box 9532, Allen, TX 75013
   >> TransUnion
   To report fraud, call: 800-680-7289 and email: fvad@transunion.com or write: Fraud Victim Assistance Department, P.O. Box 6790, Fullerton, CA 92834-6790

Once again, your account security is very important to us and it is our number one priority to keep your money and personal information safe.

No Overdraft Fees with a BECU Debit/ATM Card

Overdraft fees are a current hot topic with large banks recently announcing changes to their fee structure due to recent changes to Federal Regulation E. Late last year, the Federal Reserve Board announced new rules that prohibit financial institutions from charging overdraft fees on ATM and one-time debit card transactions, unless the consumer consents to the overdraft charge.

It is important to remember that BECU has never charged overdraft fees on Debit/ATM card transactions because we promote automatic overdraft protection through our personal line of credit and savings accounts.

Making Purchases with Your BECU Debit Card
With automatic overdraft protection at BECU, if you don't have the funds to cover a purchase, the funds are automatically transferred from the BECU account you have designated for your overdraft protection. And there is no fee for using your automatic overdraft protection.

If for some reason, you don't have automatic overdraft protection and you don't have the funds to cover a purchase, then your transaction will not be accepted; whereas, many banks will accept the transaction and then charge an exorbitant fee.

What about ATM overdrafts?
If you are making an ATM withdrawal and you don't have the funds in your BECU account to cover the withdrawal, you have the option to make a withdrawal from a savings account or personal line of credit that you have linked to your Debit/ATM card. BECU does not approve ATM withdrawals unless you have the funds to cover the withdrawal in your account. This means you won't encounter an overdraft fee when using your BECU Debit/ATM card at an ATM.

Committed to Our Members' Financial Well-Being
As a not-for-profit credit union, BECU is committed to the financial well-being of our members; therefore, we have always offered fair, responsible and affordable financial services. Our membership has always and continues to enjoy the benefits of better rates, fewer fees and great member-first service.

Questions?
If you have additional questions about your BECU Debit/ATM Card or want more information on automatic overdraft protection, call us at 206-439-5700 or 800-233-2328.

Let Your Home Invest in You with Equity Advantage—as Low as 3.99% APR*

For many Americans, a home provides financial security. And many of us have invested a lot of time and money in our homes. So when it comes time to find much-needed funding, why not have your home invest in you? You can use the equity in your home to pay for home improvements, debt consolidation, and education expenses or to increase your cash flow for a rainy day.

With BECU Equity Advantage, as you pay down your balance, your funds become available again and there’s no annual fee or prepayment penalties. If you are concerned about declining house values, you can get even more borrowing flexibility with up to 90% loan to value option. Have a home equity loan elsewhere? Consider refinancing to get more affordable and flexible financing with BECU Equity Advantage.

BECU Equity Advantage is two home equity options in one account.

1. 3.99% APR*
   Variable Rate Home Equity Line of Credit—great for remodeling or education costs where expenses may vary and you need access to funds over a period of time.
2. 5.74% APR*
   Fixed Rate Home Equity Advance—great for projects when you know exactly how much money you need. Receive funds in one lump sum, and enjoy the comfort of knowing your rate will remain the same throughout your loan.

Questions?
For more details on how you can leverage the equity in your home, visit BECU Equity Advantage, or call 800-233-2328.

*Effective 3/1/10 and subject to change, 80% loan-to-value (LTV) Variable Rate Line of Credit as low as 3.99% APR with Fixed Rate Advances as low as 5.74% APR and 90% LTV Variable Rate Line of Credit as low as 4.99% APR and Fixed Rate Advances as low as 7.74% APR, based on LTV, owner occupancy, excellent credit qualifications and include 0.50% rate reduction for automatic payment from a BECU account. Higher rates non-owner occupancy and lesser creditworthiness, or without automatic payment option. APRs do not include costs. Line of Credit rate may vary monthly, unless fixed rate loan is locked, based on the highest Prime Rate as published in the Wall Street Journal as of the date of any rate adjustment plus or minus a margin, subject to a minimum of 3.99% APR(80% LTV)/4.99% APR (90% LTV) with automatic payment; maximum 18% APR. Equity Advantage Lines of Credit provide for monthly payments of interest, subject to lesser of $100 or your balance, for up to 10 years credit advance draw period. During the interest-only period, principal is not reduced and at the end of this period, your monthly payment will increase based on the principal and interest necessary to pay the loan balance over the remainder of the loan term. You may have to pay a BECU Loan Fee of $300 for property located outside of WA and may have to pay certain fees to third parties that range between $0 to $2,753. Additional state or local mortgage fees or taxes may apply. Property insurance and, if applicable, flood insurance required.