Affinity Logo Affinity Logo
search Routing #221283512
Locations Schedule an Appointment
search
Routing #221283512
Locations
Schedule an Appointment

Affinity Investment Services: Individual Retirement Accounts (IRAs)

We give advice based on what's best for your retirement, not our own.

Individual Retirement Accounts (IRAs)

Earn +50 PointsWhat is This?

Individual Retirement Accounts (IRAs) are a smart way to save for your future. With disciplined savings and tax advantages, an IRA can help you reach a more secure and comfortable retirement.  Affinity Investment Services1 can help you choose the products best suited to your needs.

Why should IRAs be part of your retirement plan?

  • Tax-deferred growth: your IRA earnings are not taxed each year, providing more growth potential.
  • Accumulate more: your IRA will grow faster over time since earnings are compounded.
  • Supplement a 401(k): you can contribute to an IRA to supplement your retirement savings even if you already have a 401(k).
  • Numerous investment options: your IRA can include mutual funds, stocks, bonds, and CDs.
  • Availability: anyone who works (or their spouse) can contribute to an IRA.
Contact a Financial Consultant

Traditional vs. Roth IRAs: Which is right for you?

For 2020, your total contributions to all of your Traditional and Roth IRAs cannot be more than $6,000 ($7,000 if you’re age 50 or older), or your taxable compensation for the year, if your compensation was less than this dollar limit. Both Traditional and Roth IRAs have options for rollover from employee retirement plans, but there are a few differences to keep in mind.

Anyone who has a Traditional IRA, SEP-IRA, or distributions from many types of employer retirement plans can convert their savings to a Roth IRA.

For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs.

Traditional IRA Roth IRA
Contributions are tax deductible (certain limitations apply) Contributions are not tax deductible
Earnings are tax-deferred (withdrawals will be taxed as ordinary income, future tax rate will apply) Earnings are tax exempt (free from taxes when withdrawn)
Required minimum distributions after age 72 (If you turned age 70 ½ prior to January 1, 2020, your RMDs are based on age 70 ½, not age 72 No required minimum distributions
Early withdrawal penalty before age 59½ (exceptions may apply) No penalty on early withdrawals of principal
Available to everyone (restrictions on tax deductible contributions apply) Not available to everyone (single-filers with a max of $124k modified AGI for full contribution, married-filers up to $196k modified AGI for full contribution)

Rollover IRAs

If you are retiring, leaving your current job for greener pastures or simply want to consolidate existing retirement accounts, you may have a range of options at your disposal. No matter where you are with your retirement plan, Affinity's Financial Advisors can help you choose what's best for your needs. Options may include:

  • Roll over your existing assets into an IRA plan.
  • Leave your assets in your former employer's plan, if allowed.
  • Move assets to a new employer's plan, if allowed.
  • Cash out your assets in a lump-sum distribution (may be subject to federal income tax withholding, and additional penalties).

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. Affinity Federal Credit Union and Affinity Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Affinity Federal Credit Union, and may also be employees of Affinity.  These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Affinity Federal Credit Union or Affinity Investment Services.  Securities and insurance offered through LPL or its affiliates are: 

Not Insured by NCUA or Any Other Government Agency Not Credit Union Guaranteed Not Credit Union Deposits or Obligations May Lose Value
The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.