Individual Retirement Accounts

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Set yourself up for a secure financial future — no matter where you’re at in life.

We have Traditional, Roth, and SEP IRAs, so you can choose what’s best for you. There are no setup or maintenance fees, and you’ll enjoy the personal service you’ve come to expect from United American Bank.

Summary
  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,500 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase CDs within IRA
  • $1,000 minimum deposit to open
Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 1/2
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70 1/2

Roth IRA

  • Income limits to be eligible to open Roth IRA****
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal****
  • Principal contributions can be withdrawn without penalty****
  • Withdrawals on interest can begin at age 59 1/2;
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income
SEP IRA

An SEP IRA allows employers to contribute to traditional IRAs that have been set up for their employees. A business of any size, even self-employed individuals, can establish an SEP.

If you are self-employed or your employer offers SEP IRAs, please contact us to learn more about how you can start saving!

Details:

  • Ideal for businesses of any size or self-employed individuals
  • Reach your retirment goals with the help of your employer
  • Maintain complete ownership of SEP IRA funds
  • Earn competitive interest on entire balance
  • Contributions are tax deductible for businesses; a business pays no taxes on earnings
    • Contributions made only by the employer
    • Only self-employed may make contributions on their own behalf
  • Little to no documents to file with government
  • Inexpensive to set up and operate
  • Flexible annual contributions – good plan if cash flow is unpredictable
  • Can contribute up to 25% of each participant's annual compensation (earned income)
    • Or, up to the maximum allowable limit for current plan year, whichever is less*
    • Must contribute equally for all employees
  • Employee must first establish a traditional IRA, in which the employer will deposit SEP contributions
  • $1,000 minimum deposit to open 

*Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 10% penalty.

****Subject to some minimal conditions. Consult a tax advisor.

It’s fast and easy to apply!