individual retirement accounts
Invest in you with a tradiitional or roth ira. It’s never too early to start planning for the rest of your life.
should i get a
traditional or roth ira?
The right choice for you depends entirely on what your tax bracket and income will be in retirement. We recommend speaking with a tax advisor or financial consultant that can review your specific life situation and give advice based on which will provide you the best advantage.
Take a look at the chart below to get an idea of what might be best for your retirement savings plan.
Allows you to fund with pre-tax dollars + can reduce taxable income.
Upfront tax breaks and pay taxes when you withdraw.
Funded with after-tax dollars + does not reduce taxable income.
Withdrawals are tax-free and penalty-free in retirement.
traditional ira
roth ira
$7,000 per year (ages 50+)
$7,000 per year (ages 50+)
traditional ira
$7,000 per year (ages 50+)
roth ira
$7,000 per year (ages 50+)
*APR = Annual Percentage Rate. See a representative for details.
**Please keep in mind we always pull credit for any new member as part of our identity verification process.
compare by the numbers
Use our Traditional vs. Roth IRA calculator to gain more insight into the best retirement savings option for you!
retire by design
Whether your ideal retirement is putting around the course or jumping from cruise to cruise, you can’t get there without planning ahead. We spend so much of our lives working and waiting for the weekends. Retirement is your time to truly reflect on the life you’ve built along the journey.
open an individual retirement account
The best IRA savings account for you depends on your unique financial situation. Some people even have multiple IRAs or a mix of the two types. Visit a SunWest Credit Union branch to open an account today, or explore other savings options.
Individual Retirement Accounts FAQ
What is an IRA?
An Individual Retirement Account (IRA) is a type of savings account designed to help you save for retirement while benefiting from tax advantages. These accounts are created to save for retirement based on tax-free growth or on a tax-deferred basis.
Who can open an IRA?
A traditional IRA can be opened by anyone with earned income (no age restriction as of 2020). A Roth IRA can be opened by anyone with earned income, regardless of age, if their adjusted gross income is below IRA limits.
Why invest in an IRA?
IRAs allow you to supplement your current savings and receive tax breaks specific to these savings accounts. As if that’s not enough to motivate you to plan ahead, a 2019 report from the Federal Reserve highlights the fact that 44% of non-retired adults don’t see themselves as on track for retirement. That’s a lot of people who aren’t ready to walk away from the job on time.
What's the difference between traditional and roth?
Traditional IRA: Allows you to fund with pre-tax dollars + can reduce taxable income. Upfront tax breaks and pay taxes when you withdraw. Best if you think you’ll be in a lower tax bracket during retirement.
Roth IRA: Funded with after-tax dollars + does not reduce taxable income. Withdrawals are tax-free and penalty-free in retirement. Best if you think you’ll be in a higher tax bracket come retirement.
Compare side-by-side
Can I have both types of IRA accounts?
Yes, as long as the total amount of your contribution does not exceed the maximum annual contribution requirements.
Can I take money out of my IRA?
Yes, however, you may be subject to tax withholding and penalty fees.
What is an IRA transfer?
An IRA transfer is the movement of funds from one IRA to another. No money touches your hands and is processed entirely between the financial institutions involved.
What is a rollover?
A direct rollover is when you move funds from a non-IRA retirement account, such as a 401k or other employer-sponsored plan, into a Traditional IRA. The funds go directly from one plan to another, and you never touch any money.
An indirect rollover is still a movement of funds from one to the other, but this time, you get cut a check and have 60 days from the time the funds are withdrawn to deposit into another retirement account, otherwise they are subject to tax + IRS penalties. A rollover can only be done once every 365 days.
*APY = Annual Percentage Yield. See a representative for details.
**Please keep in mind we always pull credit for any new member as part of our identity verification process.
