Individual Retirement Account

retirement account image

Secure Your Future With An Individual Retirement Account

Is an IRA Right For U? Take our UBank One-Minute IRA Test and find out. Then call one of our customer service representatives today at 423-784-9446.

U might also be able to save on your present taxes with an Individual Retirement Account, by deducting your qualified contributions from your taxable income. Many Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service.

With an Individual Retirement Account, U may also be able to defer taxes until you retire when U will probably be in a lower tax bracket. The chart below shows U how much U may be able save each year. U may want to consult your tax adviser to review the tax deductible status of an IRA. Regardless of the amount you’ll be able to save now on taxes, an IRA is a smart way for U to save for a secure retirement.

IRA Tax Savings Potential Chart:

IRA Deductible
Contribution
Amount
15 %
Tax Bracket
Savings
28 %
Tax Bracket
Savings
31 %
Tax Bracket
Savings
36 %
Tax Bracket
Savings
39.6 %
Tax Bracket
Savings
$ 500 $ 75 $ 140 $ 155 $ 180 $ 198
$ 1,000 $ 150 $ 280 $ 310 $ 360 $ 396
$ 2,000 $ 300 $ 560 $ 620 $ 720 $ 792
$ 2,250 $ 337 $ 630 $ 697 $ 810 $ 891
$ 4,000 $ 600 $ 1,120 $ 1,240 $ 1,440 $ 1,584

If You’re Changing Employers, An IRA Rollover Makes Sense. If U are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, U can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. U can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us, or U can do it yourself with an IRA-to-IRA rollover.

Funds must be “rolled-over” (placed in another IRA or back into the same IRA) within 60 days of receipt of the money. (Day one starts the day after actual receipt). If not rolled over within 60 days, the amount kept must be claimed as income and could be subject to IRS penalties if the account holder is not 59 1/2 years old or disabled. For more information about IRA Rollovers or opening a new IRA, contact Vonda Swafford or Sheila Irwin at 423-784-9446.