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Saving with IRAs

Increase Your Retirement Savings

Individual Retirement Accounts Can Help You Prepare for Everything that Lies Ahead

Our IRA options can help you save the money you need to live comfortably when you retire. With the benefit of tax-deferments, IRAs are an excellent opportunity for your investment to grow faster than in a taxable account. 

In addition, IRAs are a great way to supplement a 401(k). Utilizing both options can help you reach your saving goals faster and make your retirement even more financially comfortable.

For added peace-of-mind, UFirst IRAs are Federally Insured by the NCUA up to $250,000 so you can be confident in the security of your savings. 

IRA account

Open an IRA

Visit your local UFirst branch to open an IRA. You can also call 801-481-8800 or select "Talk with an Expert" below to learn more.
Talk with an Expert

What is an IRA? 

An IRA, or Individual Retirement Account, is an account that offers tax advantages and a secure way to save for retirement. UFirst IRAs avoid market risk and provide a safe return on the hard-earned money in your IRA. These features make our IRAs an ideal way to prepare and save for your future. UFirst IRAs earn dividends on the entire balance of the IRA and have no monthly fee.  

Traditional IRA and Roth IRA 

At UFirst, we offer both Traditional IRAs and Roth IRAs. Although both accounts are designed to help you save towards retirement, it’s important to understand the different eligibilities, limitations, and tax advantages of both IRA types to choose the right account for your retirement needs.   

 

Compare Traditional IRAs and Roth IRAs

  Traditional Roth
Choosing an IRA

You want to reduce your taxable income

now and pay taxes later. 

You don't need to reduce your taxable income now

and want to have tax-free withdrawals later. 

Tax Benefits*

Generally made with pre-tax money. Contributions may

be tax-deductible if you meet certain income eligibility.  

 

Taxes deferred until funds are withdrawn after the

age of 59.5. 

Made with after-tax money. Earnings grow tax-free. 

Earnings can be withdrawn tax-free but subject to

eligibility.  Contributions are eligible to be withdrawn

without penalty. 

Withdrawals

Taxes are paid on earnings and contributions when you

make withdrawals.

Tax-free and penalty-free provided it’s been 5 years

since your first contribution, and you are aged 59 or older

Contributions 

Contribution limit for 2023: 

Those under the age of 50: $6,500  

Aged 50 and up: $7,500 

 

Contribution limit for 2024:  

Those under the age of 50: $7,000  

Aged 50 and up: $8,000 

Contribution limit for 2023: 

Those under the age of 50: $6,500  

Aged 50 and up: $7,500 

 

Contribution limit for 2024:  

Those under the age of 50: $7,000  

Aged 50 and up: $8,000 

Eligibility 

Must have earned income. Spousal income qualifies if taxes

are filed jointly and as married.   

Must have earned income. Spousal income qualifies if taxes

are filed jointly and as married.  Must meet Modified Adjusted

Gross Income (MAGI) limits.  

Early Withdrawal Penalties  

Penalties on withdrawals taken before age 59.5. See penalty

exceptions below. 

No penalties for early withdrawals if you are 59.5 and it’s been

5 years since your first contribution. 

Required Minimum Distribution

Minimum distribution required at the age of 73.

 

No distribution requirements.

 
Penalty Exceptions

Age 59.5 

First-time home purchase up to $10,000 

Qualified education expense 

Death or permanently disabled 

Health insurance for unemployed 

See more exceptions here.  

Age 59.5 

First-time home purchase up to $10,000 

Qualified education expense 

Death or permanently disabled 

Health insurance for unemployed 

See more exceptions here

*UFirst Credit Union does not provide tax or legal advice.

SEP IRA 

Simplified Employee Pension Plan

If you have an SEP IRA as an employment benefit or if you are a business owner who contributes to an employee IRA, you can learn more about SEP IRA .

If you are self-employed or a business owner, you can take advantage of a Simplified Employee Pension Plan. SEP IRAs do not have tax filing requirements, no account fees and no minimum to open. As a business owner, you can also contribute to your employee’s retirement through SEP IRAs.  


Contributions 

Contributions to SEP IRAs are completely discretional and can vary year to year depending on your financial situation. Years that your business is financially successful, you can fund more and, in years when finances are tight, you can opt to fund less. This gives you the control you need to save throughout your career.    


Contributions cannot exceed the lesser of: 

  • 25% of the employee’s compensation, or
  • $66,000 (for 2023) 

Moving your IRA 

IRA transfers and rollovers are the best ways to consolidate existing accounts. If you have multiple IRA or retirement accounts, consolidating helps simplify your retirement savings. 

Rolling over a 401(k) from a previous employer into an IRA ensures you have control over your investment. You can continue to build your retirement savings and still get tax benefits.  

IRA Transfers 

An IRA transfer enables you to transfer funds from one IRA to a different IRA of the same type. For example, funds could be moved from a Traditional IRA to another Traditional IRA. A direct transfer is the simplest way to move assets from one account into another. Transfers are not taxable or reportable to the IRS and are often fully managed by the distributing and/or receiving financial institutions.  

IRA Rollovers 

An IRA rollover refers to the movement of funds between any type of retirement account. Typically, one rollover is permitted during a 12-month period without tax implications. It is still reportable to the IRS and must be accounted for at tax time.

A direct rollover refers to the movement of funds from a retirement plan, like a 401(k), to a different retirement account. With a direct rollover, your plan administrator will make a check payable directly to the other retirement plan and no taxes will be withheld from your direct rollover. 

Though an indirect rollover is a tax-free distribution of all or part of your IRA assets, it is reportable and, therefore, potentially taxable if funds are not quickly deposited. If all or part of the funds are deposited back into an IRA or retirement account within 60 days, the money will not be taxed. Indirect rollovers are subject to a mandatory 20% withholding. If the amount withheld is not replaced to the amount rolled over, this could lead to a taxable event plus penalties depending on age. 

 

Start Saving for a Better Retirement 

Whether it’s opening an IRA or rolling over a 401(k), our financial advisors can help you find the right savings solution to ensure your retirement goals are on track. Let us help you plan for your future. Visit a local branch or call us at 801-481-8800 to get started. 

Contact Us Today! 


See IRS guidelines for IRA rules about contributions, withdrawals and how to avoid withdrawal penalties.
No minimum requirement for IRA Accumulator option.
UFirst Credit Union does not provide tax or legal advice. 

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