IRAs
Choosing the Right IRA
IRAs, are ideal for those whose retirement is in the near future, as well as for those whose time is still several years away. When considering your retirement, plan smart and choose an IRA at Western Rockies.
Take advantage of the IRA benefits:
- Earn tax-deferred, compound dividends on your money
- IRA certificates with competitive rates
- 2016 : Deposit up to $5,500 of earned income per year or $11,000 per year for couples, If you are age 50 or older, deposit up to $6,500 or $13,000 per year for couples
- Begin penalty-free withdrawals as early as age 59½
- Continue tax-deferred deposits as late as age 70½
- Take penalty-free early distributions for education or a first-time home purchase (you must still pay taxes on the money you withdraw)
| Roth IRA | Traditional IRA | |
|---|---|---|
| Tax-deductible contributions? | No. | Maybe. Deductible contributions could be phased out as adjusted gross income increases. |
| Earnings grow tax-deferred? | Yes. Possibly tax-free. | Yes. |
| Tax-free withdrawal?* | Yes. | Yes. |
| Maximum annual contribution for IRAs? | 2016: $5,500 for individuals under age 50 $6,500 for individuals age 50 or older | 2016: $5,500 for individuals under age 50 $6,500 for individuals age 50 or older |
| Required minimum distribution rules? | No. | Yes. |
| Contribution allowed after age 70½? | Yes, while you receive earned income. | No. |
* Subject to IRS provisions. Certificate penalties still apply. Please consult your tax advisor. Source: CUNA Brokerage Services, Inc. 