Plan for Retirement with an IRA or Annuity, Growing at 4%
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The short answer: Providence Association offers Traditional IRAs, Roth IRAs and annuities that currently earn 4% a year, with a 3% lifetime guaranteed minimum and no fees. You can open an account with a $1,000 minimum deposit. Your money grows tax-deferred, or tax-free with a Roth IRA, and it is not tied to the stock market.
The current rate is set by Providence’s board and can change. It never drops below the guaranteed minimum.
Why start saving for retirement now?
People are living longer, so retirement savings often need to last 25 years or more. Social Security alone usually isn’t enough. If you were born in 1960 or later, your full Social Security retirement age is 67, and claiming at 62 cuts your monthly benefit by about 30%.
The biggest advantage you have is time. Here is what a $1,000 opening deposit plus $100 a month could grow to by age 65 at 4%:
| If you start at age | You deposit in total | Your balance at 65 (approx.) |
|---|---|---|
| 25 | $49,000 | $123,100 |
| 35 | $37,000 | $72,700 |
| 45 | $25,000 | $38,900 |
| 50 | $19,000 | $26,400 |
Illustration only. It assumes 4% a year, compounded monthly, stays the same for the whole period, and it does not include taxes. Actual results will vary. Try your own numbers with our retirement calculators.
IRA vs. Roth IRA vs. annuity: which is right for you?
All three earn the same 4% rate at Providence. The difference is when you pay taxes and how much you can put in each year.
| Traditional IRA | Roth IRA | Annuity | |
|---|---|---|---|
| Taxes on deposits | Often tax-deductible now | No deduction, paid with after-tax money | No deduction, paid with after-tax money |
| Taxes on growth | Tax-deferred | Tax-free when withdrawn under IRS rules | Tax-deferred |
| Taxes when you withdraw | Taxed as income | Qualified withdrawals are tax-free | Only the earnings are taxed |
| 2026 yearly limit | $7,500 ($8,600 if 50+), combined with Roth | $7,500 ($8,600 if 50+), combined, with income limits | No IRS yearly limit |
| Often a good fit if… | You want a tax break today | You expect higher taxes later, or you’re early in your career | You’ve maxed out your IRA or 401(k), or want to save more |
2026 limits are from the IRS. Roth IRA income limits apply, so see the IRS Roth IRA page. Talk to your tax advisor about which option fits you.
Traditional IRA
Lower your taxable income now and pay tax later, when you withdraw in retirement.
- Contributions may be tax-deductible
- No tax on interest until you withdraw
- Best for a tax break today
Roth IRA
Pay tax now, then enjoy tax-free income later. Popular with savers in their 20s and 30s.
- Qualified withdrawals are 100% tax-free
- No tax on growth
- Great if you expect a higher tax bracket later
Annuity
Save beyond IRA limits, or save without an IRA at all. You can turn your savings into guaranteed monthly income for life.
- No IRS yearly contribution limit
- Tax-deferred growth
- Optional lifetime income payments
Learn more on our IRA and Roth IRA and Annuities pages. Self-employed or a small business owner? See our SEP IRA and SIMPLE IRA plans.
Can I take money out before retirement?
Yes, but plan ahead. Withdrawals before age 59½ usually owe a 10% IRS additional tax on top of regular income tax. Providence may also charge for withdrawals in the first six years.
The IRS makes exceptions for IRA withdrawals used for:
- a first home, up to $10,000
- college costs
- a disability
- large medical bills
- the birth or adoption of a child, up to $5,000
To use an IRA for college savings, see our College Tuition Fund.
Leaving your job? Roll over your 401(k) the safe way
When you change jobs or retire, you can move your 401(k) into a Providence IRA. Ask for a direct rollover, where the money goes straight from your old plan to Providence. If the plan sends the check to you instead, the IRS requires 20% withholding, and you have only 60 days to redeposit the full amount. We arrange the paperwork for you, so your money keeps growing tax-deferred with no tax or penalty.
How to open a Providence IRA or annuity
- Talk to us. Call 877-857-2284 or (215) 627-2445, or email sales@provassn.com. We’ll help you choose the right account, in English or Ukrainian.
- Fill out the application. Print the preliminary annuity and IRA application, or find it on our Forms page.
- Make your first deposit of $1,000 or more, or let us roll over an existing 401(k), IRA or annuity.
Providence Association is a not-for-profit Ukrainian Catholic fraternal benefit society, serving members since 1912. We are licensed in Pennsylvania, New Jersey and Michigan.
Retirement savings FAQ
What interest rate does Providence pay on IRAs and annuities?
Providence IRAs, Roth IRAs and annuities currently earn 4% a year, with a 3% lifetime guaranteed minimum. The rate is set by Providence’s board and can change, but it never falls below the guaranteed minimum.
What is the minimum deposit to open an account?
The minimum opening deposit is $1,000 for a Providence IRA, Roth IRA or annuity.
Does Providence charge fees?
No. Providence charges no maintenance fees, administrative charges or loads, so every dollar you deposit earns interest. Charges may apply only to early withdrawals.
How much can I put in an IRA in 2026?
For 2026, the IRS limit is $7,500 a year across all your Traditional and Roth IRAs, or $8,600 if you are 50 or older. Annuities have no IRS yearly limit.
Can I roll my 401(k) into a Providence IRA?
Yes. Providence arranges direct rollovers from 401(k)s and other retirement plans, so your money moves without the 20% federal withholding and stays tax-deferred.
Is my money in the stock market?
No. Providence IRAs and annuities earn a declared interest rate with a guaranteed minimum, so your balance does not go down when the stock market falls.
This page is general information, not tax, legal or investment advice. Rates and terms can change. IRA and annuity products are not bank deposits and are not FDIC insured. Please consult your tax advisor about your situation. Last updated October 2026.