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Individual Retirement Accounts (IRAs)

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

Individual Retirement Accounts (IRAs)

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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 an Affinity Financial Advisor

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

Traditional and Roth IRAs have the same maximum annual contribution limits (for 2014 & 2015: $5,500/year under age 50, $6,500/year age 50 or older) and both 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.

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will be taxed as ordinary income, future tax rate will apply) Earnings are tax exempt (free from taxes when withdrawn)
No contributions after age 70½ Can contribute at any age
Required minimum distributions after age 70½ 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 $110k modified AGI for full contribution, married-filers up to $173k 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).

1 Affinity Investment Services Financial Advisors are Registered Representatives of INVEST Financial Corporation, member FINRA/SIPC. INVEST and its affiliated insurance agencies offer securities, advisory services and certain insurance products. INVEST is not affiliated with Affinity Federal Credit Union, Affinity Investment Services, or other entities named. Products offered are: • Not insured by the NCUA • not a deposit or other obligation of or guaranteed by any credit union • subject to risks including the possible loss of principal amount invested.

This website may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting, or tax advice. You may wish to consult an attorney, tax advisor, or accountant regarding your specific situation. No representations are made as to the accuracy of the information contained herein or any information contained in any link provided herein. INVEST does not offer tax or legal advice.

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