Skip to main content
Search

Individual Retirement Accounts (IRA)

Individual retirement accounts offer tax-deferred opportunities, which can help your savings grow faster. Choose from a variety of IRA products to fit your personal situation. To determine the best IRA option for you, continue reading – then call us at (800) 348-7468 or contact an Everence representative for more information.

What’s the difference between Traditional IRA and Roth IRA?

Traditional IRA

  • Pre-tax contributions
  • Savings grow tax-deferred
  • Withdrawals are taxed

Roth IRA

  • Contributions are taxed
  • Savings grow tax-free
  • Withdrawals are tax-free (after age 59½)

In general, choose a traditional IRA if you want an immediate tax deduction and a Roth IRA if you don’t need a tax break right away.

Choosing an IRA custodian

It’s important to consider how you want to grow your IRA savings. Different investments are available from different IRA custodians. For example:

  • Credit union and bank IRAs – save in certificates or savings accounts
  • Insurance company IRAs – purchase annuities
  • Mutual fund company, trust company or brokerage IRAs – invest in mutual funds, stocks and bonds

Rollovers

If you change jobs, you may be able to roll over your retirement plans into an IRA. You can even roll over one IRA into another. This way, your retirement savings are all in one place, and (in some instances) you may have broader investment choices. Talk with your retirement plan administrator or financial representative to learn more.

Comparing your IRA options


Traditional IRA

Roth IRA

Tax Advantages1 Contributions may be tax-deductible, and earnings grow tax-deferred until withdrawal. Earnings grow tax-free, and may be withdrawn tax-free if your account has been open for five years and:
  • You are age 59½ or older, or
  • The distribution is due to your death, disability, or a first-time home purchase.4
Eligibility You can contribute if you have earned compensation and are under the age of 70½. You can contribute if you have earned compensation and your modified adjusted gross income falls within the limits set by the IRS.
Annual contribution
limits2

If you are under age 50, you may contribute up to $5,500.
If you are age 50 or older, you may contribute up to $6,500.
Contributions may not exceed earned income.

Withdrawals3

Earnings and contributions are taxed as income when withdrawn.

Required Minimum Distribution must begin after age 70½.

Contributions may be withdrawn tax- and penalty-free at any time. After the account has been open five years, earnings may be withdrawn tax- and penalty-free if:
  • You are age 59½ or older, or
  • The distribution is due to your death, disability, or a first-time home purchase.4 No Required Minimum Distribution after age 70½.
1Not intended as tax advice. Please consult with a tax professional.
2
You may contribute to both a traditional and a Roth IRA (subject to eligibility), as long as contribution limits are not exceeded. Contributions may not exceed earned income.
3
Withdrawal penalties may apply if funds are withdrawn before age 59½.
4
A $10,000 lifetime maximum applies.
This information is not intended as tax advice. Consult a tax professional for tax advice and to determine the option best for you.