IRA’S and ROTH IRA’S

IRA’S and ROTH IRA’S

The Providence Association offers two forms of Individual Retirement Accounts to the public: IRA’S an ROTH IRA’S. In each instance an annuity is used as the funding vehicle. Currently Providence pays interest at the rate of 3.25% annually. This rate will always compare favorably with standard CD’s; however, a minimum rate of 3% is guaranteed no matter how low CD rates might go in the future. The Providence investor never has to worry about renewal dates and can always make additional deposits.

IRA’s – The federal government has increased the deposit limit for income earners under the age of 70.5 to $5,500 (for persons over 49 years old, this amount is higher: $6,500) for the tax year 2017. A similar deposit can be made for the income earner’s spouse. Such deposits generate a deduction on the investor’s tax return and interest earnings accumulate tax free. Although withdrawals are subject to income tax, they are usually made after the investor has retired and is in a lower tax bracket. Withdrawals before age 59.5 incur a 10% excise tax penalty and are subject to ordinary income tax with several exceptions noted below. The proceeds from 401(k)’s or other qualified pension plans, upon distribution, can be easily “rolled-over” into a Providence IRA.

Roth IRA’s – Although deposits into Roth IRAs are not tax-deductible, withdrawals after age 59.5 and 5 years are completely tax-free. If a person owns an individual IRA and a Roth IRA, combined contributions into both cannot exceed $5,500 ($6,500 for persons over 49 years of age) in the year 2017.

IRA Withdrawals – The 1997 Tax Relief Act allowed withdrawals from all IRA’s in the following circumstances: 1.) For tuition for higher education; and 2.) For qualified first-time homebuyers ($10,000 maximum. In addition, withdrawals from traditional IRA’s are permitted to cover long-term disabilities and excessive medical expenses stemming from illnesses without a prognosis of recovery.

Supplemental Annuity – Although IRA’s and Roth IRA’s are wonderful vehicles for retirement savings, because they generate either tax deductions or tax-free distributions, respectively, their greatest limitation stems from the restrictions on the amount of annually permitted deposits. A wise investor will also purchase a Flexible Premium Deferred Annuity for the purpose of accommodating additional retirement income and/or wealth for future generations.

News

08
Aug

Welcome Very Rev. Andriy Rabiy! Вітаємо всечеснішого отця Андрія Рабія!

The Providence Association joins the Ukrainian Catholic Archeparchy of Philadelphia in welcoming the appointment of Very Reverend Andriy Rabiy as Auxiliary Bishop of the Ukrainian Catholic Archeparchy of Philadelphia. Welcome and “Многая Літа”! https://www.facebook.com/permalink.php?story_fbid=1441761342543928&id=197564070297001

03
Jul

Excerpt from Providence Association Bylaws Regarding Elections

Attached below are sections of the Providence Association Bylaws regarding Elections. ELECTION OF THE GENERAL ASSEMBLY   Every qualified member of “The Providence” who is a practicing Catholic, of upright character, between the ages of 21 and 70, a member …

01
Jul

Providence Association Election Committee verifies candidates

Report of the Election Commission of the Providence Association of the Ukrainian Catholic in America. TERM  2018-2022 

01
Jun

Annuity Rate

Click here to view our tax deferred or exempt interest rate information!