900 East Paris Avenue, Suite 100, Grand Rapids, MI 49546 | 616.559.45551131 West Superior Street, Wayland, MI 49348 | 269.792.0362Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC).
Insurance products are offered through LPL or its licensed affiliates. United Bank Bank and United Wealth Management are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using the name United Wealth Management, and may also be employees of United Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of United Bank or United Wealth Management. The United Wealth Management site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial registered representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AZ, AR, CA, CO, FL, GA, IL, IN, ME, MI, MO, OH, OR, VA, and WA. Securities and insurance offered through LPL or its affiliates are:
Click below to expand and learn more about Traditional and Roth IRAs.
Set aside money for retirement and get a tax deduction on those funds.
What is a traditional IRA?
A traditional IRA is an individual retirement account that offers tax advantages to savers. The contributions you make may be fully or partially deductible, depending on your situation. Investments grow tax-deferred and you are not taxed on gains until you withdraw them. There are two types of IRAs. The other is a Roth IRA, which you contribute to with after-tax funds and then draw the money out tax-free in retirement.
The role of a traditional IRA in your plan
This account offers a tax-advantaged way to save for retirement in addition to, or in place of, an employer-sponsored retirement account. The money you contribute can be invested in stocks, bonds, mutual funds CDs and other investments.
Is a traditional IRA for you?
If you’re looking to reduce your tax bill, this type of retirement account is especially attractive because you can contribute to it right up to the tax filing deadline. There may be income limits to contribute to a traditional IRA if you're an active participant in your company’s retirement plan. Please check with your tax advisor or one of our financial professionals to see if you're eligible to contribute. Keep in mind, early withdrawals prior to age 59½ may be taxed as income and assessed a 10% penalty.
Distributions in retirement are taxed as ordinary income.
Grow your retirement savings with after-tax money for tax-free withdrawals.
What is a Roth IRA?
While a traditional IRA gives you a tax break at contribution time, a Roth IRA provides no tax break for contributions, but earnings and withdrawals are generally tax-free.
The role of a Roth IRA in your plan
The contributions you make to a Roth IRA are not tax-deductible, however those contributions and investment earnings grow tax-free, meaning you don’t have to pay taxes on the funds when you withdraw them. Another benefit to the Roth IRA is its flexible withdrawal rules. If you run into a financial need, you can withdraw your contributions (not earnings) at any time without having to pay income taxes or an early withdrawal penalty.
Is a Roth IRA for you?
Generally, a Roth IRA helps you manage your tax burden in retirement. Getting the most tax savings will depend on whether you think your annual income and tax bracket will be lower or higher in retirement. Younger people tend to be in a lower tax bracket now than they’ll be in retirement, which makes a Roth IRA ideal.
You can contribute to a traditional and a Roth IRA during the same year, as long as the total amount does not exceed the maximum allowable contribution limit.
|Traditional IRA||Roth IRA|
|Contributions||Tax deductible||Not tax deductible|
|Distributions||Taxed as income||Tax free|
Why United Wealth Management
You may be questioning if you should invest in a traditional IRA or a Roth IRA—or both. Trust us to help guide you toward the best solution for your financial wellbeing.
Real Solutions for Real Life
Preparing for initial meeting
Gather financial statements and start a list of your current and future financial goals.
As your wealth management partner, we’re united in our mission to help you pursue your financial goals.
Education and tools
A few simple resources, like market information and calculators, can make managing your money so much easier.