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Invest in Your Future with an Individual Retirement Account (IRA)

There is no better time to start saving for retirement, than right now! Whether you’re just getting started or looking to supplement an existing 401K with your employer, we can help. At UECU, we offer an array of retirement savings options.

UECU’s IRA Benefits:

  • Multiple savings options with tax advantages (Traditional IRA, Roth IRA, IRA Certificates of Deposit, and Coverdell ESA)
  • Competitive dividend rates consistently higher than the national average
  • Insured up to $250,000 by the NCUA
  • No account opening or maintenance fees
  • Expert IRA Specialist available
  • Access to your account 24/7 with Mobile and Online Banking
  • Convenient payroll deduction

Choose the IRA that’s Right for You:

Traditional IRA

One of the key benefits to contributing to a Traditional IRA is the potential for a tax deduction up front. This option may make sense for you if you anticipate a higher tax rate while saving, anticipate a lower tax rate during retirement, are interested in taking the Required Minimum Distribution (RMD) amounts during retirement, or you are not concerned about tax savings for beneficiaries.

  • Tax considerations: Contributions may be tax deductible; earnings are tax-deferred
  • Eligibility: You (or your spouse if filing a joint tax return) must earn compensation from employment.
  • Income limits: see IRS Publication 590 at irs.gov
  • Maximum yearly contribution: Up to $6,500 (plus $1,000 if you are age 50 or older) for 2023 and up to $7,000 (plus $1,000 if you are age 50 or older) for 2024 . Starting with the 2020 tax year, you may make a contribution at any age.
  • Contribution deadlines: You can contribute to your IRA until the due date for filing your federal income tax return for the year (for most individuals this is typically April 15th).
  • Withdrawals: While you’ll get the most out of a Traditional IRA at retirement, you can withdraw the money anytime, subject to income tax. An IRS penalty tax also may apply unless you are age 59 1/2 or older.

Roth IRA

Unlike the Traditional IRA, contributions to a Roth IRA are never tax-deductible. But the money you contribute to your Roth IRA can be withdrawn tax-free at any time. And if you qualify, you can withdraw the earnings tax-free too. A Roth IRA may be more fitting if you anticipate a lower tax rate while saving, anticipate a higher tax rate during retirement, want to avoid RMDs, or you’re concerned about tax savings for beneficiaries.

  • Tax considerations: Contributions are taxable and can be withdrawn tax and penalty-free at any time; earnings are tax-deferred; certain earnings withdrawals may be tax-free
  • Eligibility: No age limit to contribute; however, the owner must be earning income.
  • Income limits: see IRS Publication 590 at irs.gov
  • Maximum yearly contribution: Up to $6,500 (plus $1,000 if you are age 50 or older) for 2023 and up to $7,000 (plus $1,000 if you are age 50 or older) for 2024
  • Contribution deadlines: You can contribute to your IRA until the due date for filing your federal income tax return for the year (for most individuals this is typically April 15th)
  • Minimum Required Distributions (withdrawals): No withdrawal requirements

Advantages IRA Certificate of Deposit

For current rates, click here.

Coverdell Education Savings Account

For additional Information, click here.

Trying to find the right IRA option? Check out our digital brochures.

Your IRA Options

Roth IRAs

Traditional IRAs

Coverdell IRA’s

HSA’s

Ready to Get Started? Need Help? Have Questions?

Contact an IRA Specialist at 800.288.6423.

This information is not intended to provide tax advice. See a competent tax advisor to help you determine which type of IRA best suits your needs.

Looking for More Options?

Check out Utilities Employees Investment Services* at www.utilitieseis.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/ SIPC). Insurance products are offered through LPL or its licensed affiliates. Utilities Employees Credit Union and Utilities Employees Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Utilities Employees Investment Services, and may also be employees of Utilities Employees Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Utilities Employees Credit Union or Utilities Employees Investment Services. 11 Meridian Blvd, Wyomissing, PA 19610

Securities and insurance offered through LPL or its affiliates are: Not Credit Union Guaranteed, Not Insured by NCUA or Any Other Government Agency, Not Credit Union Deposits or Obligations, and May Lose Value.

Utilities Employees Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for advisory services. Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html.