Traditional and Roth IRAs

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 $6,000 (plus $1,000 if you are age 50 or older) for 2022 and up to $6,500 (plus $1,000 if you are age 50 or older) for 2023 . 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. Once you reach age 72–or age 70 1/2 in 2019 or earlier– you must start withdrawing at least a certain minimum amount each year to avoid penalty taxes.

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 But the money you contribute to your Roth IRA can be withdrawn tax-free at any time.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 $6,000 (plus $1,000 if you are age 50 or older) for 2022 and up to $6,500 (plus $1,000 if you are age 50 or older) for 2023
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