Traditional IRA
With a traditional IRA, contributions you make in a given year may be tax-deductible. Once distributions begin in retirement, they are taxed just like regular income. Anyone who has earned income or a spouse with earned income (if you file jointly) is eligible to contribute. After you reach age 72, you must begin taking required minimum distributions (RMDs). If you expect to be in a lower tax bracket during retirement, a traditional IRA may be right for you.
Roth IRA
While contributions to a Roth IRA are not tax-deductible, withdrawals in retirement may qualify for tax-exempt treatment. And unlike a traditional IRA, there are no RMDs while you are alive. There are limits on who can contribute to a Roth IRA based on your modified adjusted gross income (MAGI). If you expect to be in a higher tax bracket during retirement, you may want to consider a Roth IRA.
Inherited IRA
If you inherit an IRA or employer-sponsored retirement plan after the original owner passes away, this is known as an inherited IRA or beneficiary IRA. Eligible IRAs include traditional, Roth, rollover, and SEP IRAs. Assets from the original IRA must be transferred to the inherited IRA and be in the new beneficiary’s name. Many RMD rules apply to inherited IRAs.
Rollover IRA
When you switch jobs, you choose what to do with the assets in your former employer’s 401(k). You may want to leave the money where it is, cash it out (which may incur taxes or penalties), move it to your new employer’s plan, or roll it over to a Rollover IRA. Prior to deciding, carefully consider whether you will incur any sales charges and/or penalties for selling your existing investments and whether you will be charged additional sales charges for purchases made within your new Rollover IRA. We can assist you with any questions you may have regarding our IRA products.
SEP IRA
A simplified employee pension individual retirement account (SEP IRA) is a retirement account funded by business owners for their employees, which offers tax-deductible and tax-deferred investment growth until retirement. Once payments begin, they are taxed as income, similar to a traditional IRA. Self-employed individuals may also open a SEP IRA for themselves.
Please refer to our Terms & Disclosures
Brokerage and investment advisory services offered by UnionBanc Investment Services LLC, an SEC-registered broker-dealer, investment adviser, member FINRA / SIPC, and subsidiary of MUFG Union Bank, N.A. Non-deposit investment and insurance products: • Are NOT deposits or other obligations of, or guaranteed by, the Bank or any Bank affiliate • Are NOT insured by the FDIC or by any other federal government agency • Are subject to investment risks, including possible loss of the principal amount invested
Clients requiring banking services will work directly with bankers from MUFG Union Bank, N.A. Bank products available through MUFG Union Bank, N.A. are FDIC-insured within permissible limits.