Which type of IRA Plan is right for me?

Published January 19, 2018


Individual retirement accounts (IRAs) are a key element in many financial plans. If you are interested in getting a tax-advantaged start on retirement, consider an IRA. But first, you should know some basics to help you compare IRA plans.

The most common types of IRAs are traditional, Roth, and SEP IRAs.

Traditional IRAs: you deduct the deposits you make in this account each year from your taxable income (subject to income limits). Those funds are taxed when you reach retirement age and begin to make withdrawals.

Roth IRA: With a Roth IRA, you pay taxes on the money you deposit into this account as you go along (subject to income limits). You don’t pay taxes on the funds when you withdraw them.

Simplified Employee Pension IRA (or SEP-IRA): a bit more complicated and is not used as widely as a traditional or Roth IRA. The program is designed for small businesses or a self-employed sole proprietor. The employer contributes to his or her own IRA and to the IRAs of employees, if there are any. The employer gets a tax deduction for those contributions.

An IRA can also include a variety of investments. As you compare IRA plans, you may decide to put a portion of your funds in credit union deposit accounts to round out your portfolio.

Types of IRAs:
  • Traditional IRAs
  • Roth IRAs
  • SEPs

Maps Credit union offers all three types of IRA plans conveniently available through our branches and the Investment Services department. To help you decide if an IRA is right for you, give us a call!

Wayne Muller, ChFC®
Financial Advisor
CUSO Financial Services, L.P.
[email protected]
503.588.0181 ext. 3552
Barbara A. Koontz
Financial Advisor
CUSO Financial Services, L.P.
[email protected]
503.588.0181 ext. 3540

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Maps Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.