IRAs from SunWest Federal Credit Union (Phoenix, AZ)

IRA

Saving for retirement has never been easier with a SunWest IRA. Maximize the tax benefits for long-term saving and feel confident in life after your career.

What is an IRA?

An Individual Retirement Account 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.

Why invest in an IRA?

It is estimated that the typical retiree will require up to 85% of their pre-retirement income in order to thrive in retirement. While employer-sponsored savings plans are an excellent way to put aside additional funds, it is believed that even these products may not be enough to accumulate the savings necessary for a stress-free retirement. That’s why IRAs are important pieces to your retirement plan as they allow you to supplement your current savings and receive tax breaks specific to these savings accounts.

What types of IRAs does SunWest offer?

We offer both Traditional and Roth IRAs.

Which IRA is best for me?

The best IRA for you depends on your unique financial situation. Many people have multiple IRAs and a mix of the two types. While the idea of tax-advantaged retirement savings is the same for both accounts, there are significant differences between the two types.

Roth IRA

Contributions made to this account are taken from money you have already paid taxes on, which allows your money to grow tax-free. This type of account also typically translates into tax-free withdrawals if certain conditions are met.

 

 

 

Traditional IRA

This type of account allows you to make contributions with money that can be deducted on your tax return, and any earnings can take advantage of tax-deferred growth until you decide to withdraw the funds in retirement. When the funds are withdrawn according to IRS guidelines, they will be taxed as income. Some retirees may find their retirement income to be lower than when they were working, meaning that their IRA distributions would be taxed at the lower rate.

Comparison

Account Details RothTraditional

Eligibility restrictions

Modified adjusted gross income

Age & general income

Contribution age restrictions

No Yes

Contributions tax deductible

No Yes

Contribution withdraw

Tax free

Age restrictions

Federal tax on earnings

None*

Deferred until withdrawn

Withdrawals

No required minimum distribution

Required minimum distribution based on age

Roll Over 

Yes

Yes

*This chart is an approximation of benefits and should be used for illustrative purposes only. The statements included on this page are not intended to act as tax advice. You should always consult with a tax adviser about potential tax implications. For more information regarding both Traditional and Roth IRAs, please visit the IRS website.

Can I contribute to an IRA?

A traditional IRA can be opened by anyone with earned income who is under 701/2. A Roth IRA can be opened by anyone with earned income, regardless of age, if their adjusted gross income is below IRA limits.

Can I invest in both a Traditional and a Roth IRA?

Yes, as long as the total amount of your contribution does not exceed the maximum annual contribution requirements.

If I take a distribution from my IRA, can I replace it without being penalized?

Once a distribution is taken from an IRA, you have 60 days from the time you receive the check to replace the funds and avoid any associated penalties or taxes. This type of rollover can only be done once every 365 days.

An IRA can be opened at any SunWest Branch

 

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