IRA Investments

IRA Investments

The Virginia United Methodist Development Company, LLC accepts deposits and rollovers for Individual Retirement Accounts (IRA). IRAs include Traditional, Roth, Savings Incentive Match Plan for Employees (Simple) and Simplified Employee Pension (SEP) Individual Retirement Accounts (IRA) for individual investors, self-employed individuals, and small business owners. The 60 month account offers, a fixed rate return of 3.25% and may be opened with as little as $5,000. For an IRA form, click here.

FAQs about IRAs

What type of IRAs are offered?

  • Traditional, Roth, Savings Incentive Match Plan for Employees (Simple) and Simplified Employee Pension (SEP).
  • The Traditional IRA is primarily for individuals who want to invest “pre-tax” income toward investments that can grow tax deferred for retirement.
  • The Roth IRA is primarily for individuals who want to invest “after tax” income for future earnings that will be tax free in retirement.
  • The Simple IRA is like the Traditional IRA (pre-tax money) except that it is primarily for self-employed individuals, someone working for a small business or a small business owner that has not set up a work related retirement plan.
  • The SEP IRA is like the Traditional IRA (pre-tax money) except that it is primarily for self-employed individuals who plan to remain a single employee business.

Are there any fees associated with opening an IRA with the Virginia United Methodist Development Company?

While the application forms indicate a one-time fee for opening an account, the fee is currently being waived.

Can I invest in both Traditional and Roth IRAs?

Yes, you may. Remember, however, that the total amount of your contributions may not exceed the maximum annual contribution limit.

What are your terms, rates and minimum deposits?

We offer a five-year, fixed rate IRA with a suggested minimum deposit of $5,000.00. Some rollovers and new accounts may qualify for a lower starting deposit. Interest is paid quarterly.

Who may invest in a DevCo IRA?

Any individual under the age 70 years and 6 months with earned income. Also, some small businesses and sole proprietors may qualify to open an IRA.

How much may I contribute to my IRA?

For 2017, the maximum deductible contribution is $5,500 for people under the age of 50 and $6,500 for people age 55 and older.

Can I make a contribution for the prior tax year?

Yes, you have until the tax filing date in April to make a contribution for the prior year.

Are there penalties for an early withdrawal?

Yes, unfortunately all early withdrawals, unless caused by a Required Minimum Distribution, will have a penalty.

What is a rollover?

It is moving assets from one qualified plan to another or to an IRA within 60 days of distribution, while retaining all the tax benefits of a qualified plan.

May I convert my Traditional IRA to a Roth IRA?

Yes, you can!

Can Virginia United Methodist Development Company do a rollover?

Yes, we can!

As with any retirement or taxable income product, there are always certain conditions that could apply to your contribution and eligibility, so it may be prudent to consult your personal tax consultant. Please call us today and we will discuss how you might benefit from an investment in a Virginia United Methodist Development Company IRA.

 

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