Individual Retirement Accounts (IRAs)

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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 2017 & 2018: $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will be taxed as ordinary income, future tax rate will apply) Earnings are tax exempt (free from taxes when withdrawn)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 $135k modified AGI for full contribution, married-filers up to $199k 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).

1Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.
Not NCUA Insured - Not Credit Union Guaranteed - May Lose Value. Affinity Federal Credit Union and Affinity Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. LPL Financial does not provide tax or legal advice.

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