Types of IRAs

There are two IRA account types available from UniBank: a traditional IRA and a Roth IRA. The IRA type you choose depends on your specific needs. Our customer service representatives will be happy to help you determine which is the best fit for you.


Traditional IRAs

With this IRA account type, contributions to may be fully or partially deductible, depending on your income level and your participation in an employer-sponsored retirement plan. Of course, a UniBank Customer Service Representative will be able to review your situation and determine the amounts you may contribute. All of the earnings that you accumulate remain tax-deferred until withdrawn, which may benefit you in later years if you are in a lower tax bracket than when you made the contribution. You may contribute to a Traditional IRA even if the contributions are not tax deductible.

Withdrawing From Traditional IRAs

Withdrawals, or distributions, are permitted any time after the age of 59-1/2, but must begin by April 1st following the year in which the participant reaches the age of 70-1/2. After the age of 59-1/2, you may make withdrawals even if you continue to earn income. It is not necessary to be retired in order to make withdrawals.

Withdrawals are also allowed for qualified first-time homebuyers (up to $10,000) or for qualified higher education expenses. Penalties may be charged for early withdrawal unless specific criteria are met. Please consult a tax advisor. 


Roth IRAs

Contributions to Roth IRAs are non-deductible (made from after-tax dollars), but all withdrawals, including earnings, are tax-free if the account has been opened for five years and the account holder is 59-1/2 or older. There are income level limits for contributions, please ask for details.

Withdrawing From Roth IRAs

Withdrawals of your contributions are allowed at any time without penalty or taxation. Tax-free withdrawals of earnings are permitted: after the age of 59-1/2, in the event of death or total disability, or as a qualified first-time homebuyer (up to $10,000). Remember, earnings must have remained in the account for five successive tax years. Unlike Traditional IRAs, with Roth IRAs, there is no mandatory age requirement for distributions. Penalties may be charged for early withdrawal of earnings, unless specific criteria are met.                                                            

Please consult a tax advisor. For more information, stop in or call any of our branch offices.