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IRAs & Retirement

IRAs & Retirement

Saving for retirement is one of the most challenging and important financial goals you will face. As a trusted partner, we promise to focus on your individual retirement needs.

Whether your retirement is a lifetime away or just around the corner, it’s never too early to start planning. We offer a wide range of retirement products and services designed to help you reach your retirement goals.

Account Details

$1,000 minimum opening balance

Automatic renewal

Fixed interest rate

Flexible terms range from 1 year and 2 years

Let a First United Banker Help You:

Select the Individual Retirement Account that’s right for you and your family.

Choose investment options that meet your goals.

Manage retirement plan distributions after your retirement.

First United Bank IRAs

Traditional IRA

Take advantage of tax-deferred earning and possible yearly tax deductions with a Traditional IRA. Begin taking distributions by age 59½ years.*

Eligibility Requirements:

  • No income restrictions.
  • You are a taxpayer under the age of 70½ with earned income, or you are a nonworking spouse under the age of 70½.

Contribution Limits:

For 2023, you can contribute up to $6,500. The catch up contribution limit for individuals age 50 or older allows an additional $1,000 contribution. Contributions cannot exceed your annual income.

*Withdrawals prior to age 59½ are subject to 10% Federal IRA penalty. Additionally, withdrawals from your IRA before the maturity date may also be subject to an early withdrawal penalty.

Rollover IRA

If you’ve recently changed jobs or retired and would like to protect the balance in your previous employer’s retirement plan, a Rollover IRA is for you.

  • Eligible distributions from an employer-sponsored retirement plan can be directly transferred into a Rollover IRA.
  • Direct rollover avoids 20% withholding requirement on distributions from employer-sponsored plans.

Deadline to Set Up and Contribute:

An individual generally has 60 days from the date he or she receives an eligible rollover distribution to contribute the assets to a Rollover IRA but may request a trustee-to-trustee transfer to move assets between IRAs that wouldn’t be subject to the 60-day rollover deadline.

Roth IRA

A Roth IRA gives you added flexibility in saving for your future. This type of IRA allows your investment dollars to build and be withdrawn tax-free if certain conditions are met.

Unlike a Traditional IRA, Roth IRA contributions are not tax-deductible.

Eligibility Requirements:

  • You must meet the maximum Adjusted Gross Income (AGI) limits.
  • You expect to be in a higher tax bracket in the future.

With a Roth IRA You Can:

  • Withdraw your IRA funds tax-free during your retirement years.
  • Continue making contributions past the age of 70½.
  • Avoid taking minimum distributions during your lifetime.

Contribution Limits:

For 2022, you can contribute up to $6,500. The catch up contribution limit for individuals age 50 or older allows an additional $1,000 contribution. Contributions cannot exceed earned income but are subject to AGI limits.

*Withdrawals prior to age 59½ could be subject to 10% penalty. Additionally, withdrawals from your IRA before the maturity date could also be subject to an early withdrawal penalty.

2023 Adjusted Gross Income Limits:

Full contribution if AGI is less than $138,000 (single) or $218,000 (joint).

Partial contribution if AGI is less than $153,000 (single) or $228,000 (joint).

2022 Traditional & Roth IRA Contribution Deadline is 04/18/2023.

Educational IRA/Coverdell Education Savings Account (CESA)

Start saving for your child’s college education today. With the cost of college tuition on the rise, an Educational IRA can help ease the burden of funding a student’s education. This IRA may be established for any child under the age of 18.

  • Nondeductible contributions up to a maximum amount may be made to a child’s account annually.
  • Contribution limit is phased out for contributors who meet the Adjusted Gross Income (AGI) limitations.
  • Education IRA withdrawals used to pay for higher education expenses, such as college tuition and fees, are generally tax-free and are not subject to a 10% IRS penalty for early withdrawal.

*If a child receives a scholarship or does not go to college, you may elect a tax-free rollover from one student’s Education IRA to that of another family member (Rollovers do not affect the annual contribution limit). Funds in an Education IRA must be distributed, or transferred to another family member’s Education IRA, at the time the designated student reaches age 30. If the funds are not used for qualified education expenses, withdrawals are generally taxable and may be subject to a 10% penalty.

To learn more about IRAs visit our IRA Service Center. Learn more

First United Bank does not provide tax or accounting advice. Please consult your own advisors.

What Customers Are Saying About

Natalia Lawson

Personal Banking Customer