Set money aside with purpose using a tax-advantaged account designed for sustainable long-term growth.
Find the Right IRA for Your Retirement
An IRA helps you save for retirement with tax advantages. The key difference comes down to timing:
With a Traditional IRA, you may get a tax break now and pay taxes when you withdraw in retirement.
With a Roth IRA, you pay taxes now, and your withdrawals in retirement are tax-free.
The right choice depends on your income today and what you expect it to be later. Consider speaking with a tax advisor to understand what gives you the best advantage. To help you get started, use the chart below to see which option may be the best fit for your retirement goals.
Roth IRA
Traditional IRA
Best For
If you’ll be in a lower tax bracket during retirement
If you’ll be in a higher tax bracket during retirement
Considerations
Funded with pre-tax dollars
Funded with after-tax dollars
Tax Benefits
May lower your taxable income now;
earnings grow tax-deferred
No tax break now, but withdrawals are tax-free in retirement
Max. Annual Contribution
$7,500/year (before age 50)
$8,600/year (ages 50+)
$7,500/year (before age 50)
$8,600/year (ages 50+)
Withdrawals
Early withdrawals (before age 59.5) are subject to a 10% penalty
Early withdrawals (before age 59.5) are subject to a 10% penalty, unless account is 5+ years old
Required Min. Distribution (RMD)
Required starting at age 73
None
Whether retirement is around the corner or further out, it’s worth taking the time to map it out. Use SunWest financial planning tools to compare options, run any ‘what if’ scenarios, and understand your options. Then, put a plan in place that works best for YOU.
To open an IRA account, you’ll meet with a team member by phone or in person. We’ll walk you through your options and build a savings strategy together.
What is an IRA?
An Individual Retirement Account (IRA) is a savings account designed to help you prepare for retirement, with built-in tax advantages.
Who can open an IRA?
Anyone with earned income can open an IRA, though eligibility for certain types may depend on income limits.
What’s the difference between a Traditional and Roth IRA?
Traditional IRA: Funded with pre-tax dollars, which may reduce your taxable income now. You’ll pay taxes when you withdraw in retirement. Best if you expect to be in a lower tax bracket later.
Roth IRA: Funded with after-tax dollars, so there’s no tax break upfront. Withdrawals in retirement are tax-free. Best if you expect to be in a higher tax bracket later.
Can I have both types of IRA accounts?
Yes, as long as your total contributions stay within annual IRS limits.
How do IRA withdrawals and contributions work?
Withdrawals: You can take money out, but early withdrawals may be subject to taxes and penalties.
Contributions: Contribution limits depend on your eligibility and may change year to year.
What is an IRA transfer?
An IRA transfer moves funds from one IRA to another without you handling the money directly.
What is a rollover?
A rollover moves funds from a retirement plan—like a 401(k)—into an IRA.
Direct rollover: funds move between institutions.
Indirect rollover: you receive the funds and must redeposit them within 60 days.
*APR = Annual Percentage Rate. On approved credit. Certain terms, restrictions and conditions apply. Refinanced loan interest rate cannot be lower than 4.99% APR when refinancing up to 2.00% APR below your existing rate. The first payment may be deferred for up to 90 days. Your loan will accrue interest during that time. Proof of current loan rate may be required prior to closing in order to receive the refinanced rate. Offer is for vehicle refinance applications processed before July 6, 2026. This offer does not apply to vehicles currently financed through SunWest Federal Credit Union. Rates are subject to change without notice. $50 donation per funded loan will be made to Valley of the Sun United Way. SunWest reserves the right to modify or discontinue a portion or all of this promotion at any time.
See a representative for complete details, qualifications, and disclosures.
