Set up your Individual Retirement Account (IRA) by calling us at (866) 486-7782 or stop by your neighborhood Umpqua store.
How it works:
You set up an IRA savings or certificate of deposit account with us. Every year, your principal grows, thanks to your contributions and the interest you're earning. Depending on the IRA, you may be eligible for a tax deduction on your contribution today or to take a tax-free withdrawal at retirement down the road. (You must meet certain criteria, so talk to a tax advisor for more info.) What's the benefit? You have more funds to earn interest on, and you may fall into a lower tax bracket once you retire.
How much you can contribute?
For 2022 the maximum contribution limit is $6,000 or 100% of your earned income, whichever is less. For 2023, the maximum contribution limit has been raised to $6,500. If you are 50 or older, you can contribute an additional $1,000. You may make a contribution for the previous tax year through April 15th this year, or the tax filing deadline, excluding extensions.
How old do you have to be to set up an account?
Our general policy is that you must be 18 or older to open an Umpqua account. Additionally, in order to contribute to your IRA, you must have earned income or, if you file a joint return, your spouse has earned income.
Choosing the IRA that's right for you:
There are two types of IRAs—Traditional and Roth—and both have their advantages. The key is to determine which is right for you. You should consult your tax advisor if you aren't sure. Here are some things to consider:
- Which one do I qualify for?
- Do I need or qualify for the tax deduction on my contributions?
- Which tax bracket do I think I will be in during retirement?
- Will I need to withdraw the funds during retirement or do I want them to remain in my IRA?