IRAs: What You Need to Know

If you’re employed, you may already be making automatic contributions into a 401(k) plan sponsored by your current employer. That’s a great way to save for retirement, but it’s not the only way to save for your future.

Planning to change jobs, careers or launch your own business? You can leave your 401(k) in you employer's plan, roll to another employer's plan or roll over 401(k) funds into an Individual Retirement Account (IRA). And whether you’re establishing a new IRA or just ready to take a closer look at your existing one, it’s important to recognize the differences in IRA investment types.

Pre-tax vs. After-tax

An IRA is a popular option for many people, offering yet another way to help build wealth. There are tax considerations, too. For instance, Traditional IRAs give you a tax break, delaying taxes until you start taking distributions. Roth IRAs are funded with after-tax contributions, so that you need not pay taxes upon withdrawal (provided certain conditions are met).

Credit Union Saving

IRAs with the Credit Union are generally a more conservative account through which you can collect a guaranteed interest rate on money that you’ve deposited into the banking institution. They’re insured by the NCUA, so deposits and interest earned aren’t at risk with this type of IRA up to the NCUA-insured amount.

Investing

IRAs with RBFCU Investments Group allow you to convert your savings into an account that will help you build a personal retirement investment strategy that reflects your financial needs and goals. Working with a financial advisor, you can choose investment solutions from a variety of stocks, bonds, exchange-traded funds (ETFs), mutual funds and more offered through Ameriprise Financial Services, LLC. This type of IRA is potentially riskier, but may result in a better return. Different IRAs have different costs, fees and liquidity which you should ask your financial professional about.

Risks vs. Rewards

Since IRAs with the Credit Union are insured by the NCUA, they’re arguably a less risky savings option, financially speaking. Alas, less risky doesn’t necessarily mean a “higher return.” In fact, if you’re looking to build more wealth for your golden years, then it’s worth exploring how an IRA with RBFCU Investments Group might have more potential to increase your retirement income stream.

Understanding specifically the difference between opening an IRA plan with the Credit Union or through RBFCU Investments Group is an important first step to developing a more robust retirement plan.

What’s your next step? Talking with an experienced RBFCU Investments Group financial advisor who can help you develop a strategy that reflects your unique goals and financial profile. Learn more today by visiting rbfcu.org/investments or calling 1-888-294-0202 today to arrange a convenient, no-cost, no-obligation initial consultation.

Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

Ameriprise Financial Services has a partnership with this financial institution to provide financial planning services and solutions to clients. The financial institution is not an investment client of Ameriprise but has a revenue sharing relationship with us that creates a conflict of interest. Details on how we work together can be found on ameriprise.com/sec-disclosure.

Ameriprise Financial Services partners with financial institutions to provide investment advisory, brokerage and insurance services to their clients. This is a contractual relationship, which earns the financial institution compensation from Ameriprise for successful referrals. In most cases, the financial institution also receives a majority of the commissions and fees generated by Ameriprise financial advisors for the services noted above. This applies as long as the referred client maintains a relationship with Ameriprise. Non-licensed employees of the financial institutions may receive incentives from their employer for referring clients to Ameriprise. These incentives create a conflict of interest.

This information is being provided only as a general source of information and is not a solicitation to buy or sell any securities, accounts or strategies mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as a recommendation or advice designed to meet the particular needs of an individual investor. Please seek the advice of a financial advisor regarding your particular financial situation.

Ameriprise Financial is not affiliated with the financial institution.

RBFCU Investments Group is a financial advisory practice of Ameriprise Financial Services, LLC.

Be sure you understand the potential benefits and risks of an IRA rollover before implementing. As with any decision that has tax implications, you should consult with your tax advisor prior to implementing an IRA rollover.

A Roth IRA is tax free as long as investors leave the money in the account for at least 5 years and are 59 1/2 or older when they take distributions or meet another qualifying event, such as death, disability or purchase of a first home.

The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations.

Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.

Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.

RBFCU Dividend IRA accounts are insured up to $250,000 by NCUA and are separate from other deposit accounts.