Individual Retirement Account (IRA)

Did you know UARK Federal Credit Union offers flexibility in your retirement planning? Individual Retirement Accounts (IRAs) are a smart investment in your future and may help you save on taxes today. The IRA Share Account helps you save for retirement with the ease of passbook savings. Deposits can be made any time, or you can arrange payroll deduction deposits.  As your retirement funds grow, you can lock in a higher rate of return with an IRA Certificate. IRA Certificates are available for lump sum deposits of $500.00 or more.

UARK Offers Two Individual Retirement Accounts To Suit Your Retirement Planning Needs!

Traditional IRA
Traditional IRAs were created in 1975. Like other IRAs, they offer tax-deferred earnings. In contrast with other IRAs, the traditional IRA has the possibility of tax-deductible contributions. There are age requirements, but no income limits for making traditional IRA contributions. The income limits for traditional IRAs determine whether or not these contributions are eligible to be deducted from the owner's taxable income for the year.*

With Traditional IRA's:

 You can recieve tax-deferred earnings and possibly tax-deductible contributions if you meet the requirements. If you and/or your spouse actively participate in an employer-sponsored retirement plan, you can deduct contributions only if your income is below certain limits. If you're not participating in a retirement plan, your traditional IRA contribution is deductible regardless of income. Ask your credit union IRA representative for details.
You can contribute if you have earned income and you will not reach age 70 1/2 by the end of the year. If you file a joint tax return, you can treat your spouse's income as your own.
You can contribute to a traditional IRA, an employer-sponsored retirement plan, and a Roth IRA in the same year.
If you make a withdrawal before age 59 1/2, you generally must pay a 10% tax on early distributions. There are exceptions, such as rollovers, so ask your credit union IRA representative for more details.
You must begin taking required minimum distributions at age 70 1/2.

*When you withdraw from a traditional IRA, your withdrawal will be treated as taxable income

ROTH IRA
First available in 1998, the Roth IRA does not allow for tax deductions. However, it does offer the possibility of tax-free distribution of earnings. While there are no age requirements for making Roth IRA contributions, persons must fall below certain income limits in order to be eligible to contribute.*

Contributions are not tax-deductible, however, you can withdraw contributions and earnings from a Roth IRA tax-free.
To contribute to a Roth IRA, joint filers' modified adjusted gross income must be less than $160,000 and less than $110,000 for single filers.
You can withdraw funds tax-free before retirement under certain conditions: if your funds have been in your account for at least five years, you're older than 59 1/2, you buy a first-time home, or if you become disabled or die.
You are not required to start taking minimum distributions when you reach 70 1/2 as with a traditional IRA. You can let your money continue to grow tax-free for as long as you like.