Because your IRA earnings may be tax sheltered, the sooner you contribute, the faster your investment dollars grow. United offers Regular, Roth and Education IRAs that earn market rates of interest in any certificate of deposit. There is also a special IRA Float Savings Plan with a variable rate of interest that changes monthly. With a Regular IRA, all or part of your contributions may be deducted from your federal gross income. Consult a tax advisor regarding this deductibility and income limitations.
Interest earned in the account over the years is tax deferred until it is withdrawn.
Withdrawals may not be made until age 59 except in case of death, disability, medical expenses, education expenses and first time home buyer. Federal regulations require a substantial tax and interest penalty for early withdrawal. Required distributions must begin at age 70 . If money is invested in a Roth IRA, the contributions are not tax deductible and qualified distributions are not taxable. Withdrawals are not required when the owner reaches 70 .