First Northern offers a variety of ways to save for the future with IRAs. Enjoy certain tax advantages
when you open the following types of IRAs: Traditional, Roth or Roth Conversion. All are available as
IRA Share Certificates or IRA Daily Shares.
The chart below highlights the differences between the Traditional and Roth Accounts. Information
about the Roth Conversion IRA is featured below the chart. As with any tax-related concern, consult
with a tax advisor.
Comparison of Traditional and Roth IRAs
MAGI = Modified Adjusted Gross Income
Federally insured by NCUA.
Your savings are federally insured by the NCUA (National Credit Union Administration), an agency of the U.S. Government, for up to $250,000 per member with a separate coverage of $250,000 for Individual Retirement Accounts.
What is a Roth Conversion IRA?
A Roth Conversion IRA is an account established by transferring traditional IRA funds to a Roth IRA. It offers tax-free withdrawals to eligible investors. Holders of converted accounts must pay taxes on prior contributions to the traditional IRA that have been deducted previously, and on accumulated earnings, as well.
Deciding whether to convert your traditional IRA to a Roth IRA is a complex decision.
You must weigh whether the future potential tax savings offset paying taxes now.
Consult your tax advisor for details.
Not a member? Click here.