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 under age 70-1/2 who has earned income or a spouse with earned income is eligible to contribute. Starting at age 70-1/2, 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, SEP and SIMPLE IRAs. Assets from the original IRA must be transferred to the inherited IRA and be in the new beneficiary’s name.

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.

SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) IRA is a good way for smaller businesses with up to 100 employees to offer an employer-sponsored retirement plan. Employers must either match employee contributions into the account (up to 3% of the contributing employee) or make non-elective contributions, which are funds directed to the employee’s plan regardless if the employee contributes or not. Similar to a traditional 401(k), contributions are made pretax and grow tax-deferred until withdrawn.

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. Insurance services offered by UnionBanc Insurance Services, a division of MUFG Union Bank, N.A., having a California domicile and principal place of business at 1201 Camino Del Mar, Suite 208, Del Mar, CA 92014. California State Insurance License No. 0817733. 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 • Insurance and annuities are products of the insurance carriers.

 

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.

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