IRA/HSA
RETIREMENT ACCOUNTS
Put the power of tax-advantaged investing behind your retirement dreams. An IRA can help you maximize earnings while minimizing taxes.
Choose from:
- Traditional IRA – Grow your savings tax-deferred – you pay no taxes on earnings until you withdraw funds.
- Roth IRA – Assets grow tax-free – you’ll never have to pay federal income taxes on your earnings provided certain requirements are met.
IRA Comparison
| Feature | Traditional IRA | Roth IRA |
|---|---|---|
| Eligibility Age | You can contribute to a traditional IRA at anytime | You can contribute to a Roth IRA at any age |
| Early Withdrawals | Unless an exception applies, withdrawals before age 59 ½ may be subject to a 10% penalty | Unless an exception applies, non-qualified withdrawals may be subject to taxation of earnings and a 10% additional tax |
| Required Minimum Distributions (RMDs) | RMDs starting at age 73 | No RMDs during lifetime of original owner |
| Contribution Deadline | Generally, April 15th of the following year for any given tax year | Generally, April 15th of the following year for any given tax year |
Consult your tax advisor regarding the benefits of investing in an IRA.
For more information or to get started with an IRA, contact Union Federal today!
Contact UsHEALTH SAVING ACCOUNTS
Medical insurance goes only so far these days. Gain peace of mind and control with a Health Savings Account (HSA) that offers these benefits:
- In order to participate in an HSA, you must be enrolled in a high-deductible health plan (HDHP). This can either be through an employer-offered plan or by purchasing an individual policy.
- Enjoy tax savings, such as deductible contributions and tax-free distributions when your funds are used to cover qualified medical expenses.
- Savings can continue to be held indefinitely, as unspent dollars carry over from year-to-year, even into retirement.
- Once enrolled in Medicare, you may no longer make contributions to your HSA, but you can still withdraw funds tax-free.
Access your funds with an HSA debit card – it’s much easier to use than writing a personal check, and transactions are tracked on your statement.
Consult your tax advisor before opening an HSA account or contact Union Federal for more information.
| Feature | HSA |
|---|---|
| Description | Checking Account for Medical Expenses |
| Minimum to Open | $50 |
| Interest Bearing | Yes* |
| Monthly Fee | $0 |
| Minimum Balance | $1 |
| Fee if below Minimum Balance | None |
| Other Benefits | Contributions may be tax deductible |
* Interest rate tiered by balance
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