IRAs

 
 
 

IRA’s are savings plans to help you prepare for retirement. We offer Traditional and Roth IRA’s. We have several different options to meet your financial needs. Our IRA’s have no sign-up fee or maintenance fees!

  • If you leave your job or retire, roll your qualified retirement plan funds into an IRA and still keep the tax-deferred status!

  • All IRA accounts are insured separately by NCUA.

  • Email or call Amanda today at 620-669-8500 to see which IRA is right for you!

Roth IRA vs. Traditional IRA

An IRA can be an effective retirement tool. There are two basic types of Individual Retirement Accounts (IRA): the Roth IRA and the Traditional IRA. Click here to use our Roth IRA vs Regular IRA Calculator to determine which IRA may be right for you. Please note that this calculator should not be used for Roth 401(k) comparisons.

What is a Roth IRA?
A Roth IRA is an individual retirement arrangement named for the late Senate Finance Committee Chairman William Roth Jr. This type of IRA offers different tax incentives than a Traditional IRA to boost your retirement savings.

How does a Roth IRA work?
Unlike Traditional IRAs, contributions to a Roth IRA are never tax-deductible. The money you contribute to Roth IRA can be withdrawn tax free at any time. If you qualify, you can withdraw the earnings too. You are eligible to contribute if you earn a compensation or file a joint tax return with a spouse who earns compensation, and your modified adjusted gross income (MAGI) is less than or within the IRS defined limits.

What is a Traditional IRA?
A Traditional IRA is an individual retirement arrangement that allows you to save for retirement with tax-deferred earnings and the possibility of tax-deductible contributions. These tax advantages make the Traditional IRA a powerful tool in creating a balanced, long-term savings plan.

How does a Traditional IRA work?
You are eligible to contribute to a Traditional IRA if you earn compensation or file a joint tax return with a spouse who earns compensation. Starting with the 2020 tax year, you may contribute at any age. Contributions cannot exceed your annual compensation.

You may be eligible to deduct the amount of your contribution on your federal income tax return for the year. Any earnings are tax-deferred (you do not pay tax on the earnings until you withdraw them) You may withdraw money from your IRA at any time, subject to federal income tax. If you are under age 59 ½, you will also be subject to a 10 percent early distribution penalty on any taxable amount unless you qualify for a penalty exception. Once you reach age 73, you must start withdrawing at least a certain minimum amount each year to avoid penalty taxes.

Traditional and Roth IRA annual contribution:

  • 2024 - $6500

  • Additional “catch-up” contribution for owners age 50 and older - $1000

  • ($7500 Total)

Consider speaking with a competent tax advisor to determine which IRA is best for you.