Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

It's never too early to start.

    Benefits

    If you've made your bucket list, it's time to think about how you will fund it. An IRA offers certain tax advantages* while you save — so you can ensure your golden years are golden.

    We offer different plans for different financial situations. Talk to a UECU representative about which plan is the right fit for you.

    • Tax-advantaged savings for retirement*
    • Earn competitive dividends
    • No setup or maintenance fees
    • Annual contribution limits apply
    • Additional $1,000 "catch-up" contribution allowed for ages 50+
    • Tradition, Roth, and SEP available
    • Share Insurance up to at least $500,000
    • $500 minimum deposit to open

    *Consult a tax advisor.

    Types of IRAs

    Traditional IRA

    • Anyone under age 70½ may open
    • Contributions are tax deductible on state and federal income tax*
    • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
    • Withdrawals can begin at age 59½
    • Early withdrawals subject to penalty**
    • Mandatory withdrawals at age 70½

    *Consult a tax advisor

    **Certain exceptions apply, such as healthcare, purchasing first home, etc.


    Roth IRA

    • Income must be less than $120,000 annually to open ($177,000 for married couples)
    • Contributions are NOT tax deductible
    • Earnings are 100% tax free at withdrawal
    • Principal contributions can be withdrawn without penalty*
    • Withdrawals on interest can begin at age 59½
    • Early withdrawals on interest subject to penalty**
    • No mandatory distribution age

    *Subject to some minimal conditions.

    **Certain exceptions apply, such as healthcare, purchasing first home, etc.


    SEP (Simplified Employee Pension)

    A Simplified Employee Pension Individual (SEP) is a tax-deferred program that allows self-employed members and small business employers to build retirement funds through our high-yield savings account or CDs.

    • Enjoy tax advantages*
    • Give employees a way to save for their retirement
    • Available to businesses of any size (including self-employed)

    *Consult a tax advisor.