IRAs

Individual Retirement Accounts

retireTraditional Individual Retirement Account (IRA) – Contributing to a tax-deductible Traditional IRA account can help you save on your taxes and help you prepare for a comfortable retirement. It is never too early to start saving for your retirement, and as many experts say, it’s almost impossible to catch-up once you get behind in funding your retirement. A benefit of a traditional IRA is the growth is tax-deferred. This means the interest earned is only taxed when withdrawals are made. Individual Retirement Accounts (IRAs) can also be put into a term certificate to maximize your earnings.

Roth IRA – Like the Traditional IRA, a Roth IRA is also a great way to save for your retirement. The difference between a Traditional IRA and a Roth IRA is contributions to a Roth IRA are not tax-deductible. But the best part is the growth (interest earned) is tax-free as long as you have had the account open for a minimum of five years and you have reached the age of 59 ½.

Contribution limits have gone up! For 2024, your total contributions to all of your traditional and Roth IRAs cannot be more than:

  • $7,000 ($8,000 if you’re age 50 or older), or
  • Your taxable compensation for the year, if your compensation was less than this dollar limit.

Other rules may apply. Please contact your tax advisor for additional information, or one of our knowledgeable Member Service Representative at (888) 48-UNION.

IRAs are separately insured up to $250,000 by the NCUA. This coverage is in addition to the $250,000 NCUA coverage on your other UYFCU savings accounts.