Think of an IRA as a behind-the-scenes way to help your money grow. Let’s take a closer look.
Individual Retirement Accounts (IRAs) work the opposite of a loan: instead of you paying interest to the bank, the bank pays interest to you. They’re a tool for long-term growth in savings.
Key benefits:
Popular offers a variety of IRAs. Whether you’re saving for one year or 10, there are options for you. Depending on your life stage and you’re savings goals, a traditional IRA (tax-deductible) or a Roth IRA (non-tax-deductible) can help you achieve them.
Let’s review them:
In simple terms, Roth IRAs—such as the Popular Roth² or the Stock Market Roth³—let you grow your long-termsavings without paying taxes on withdrawals, as long as you retire after age 60 or qualify for an exception (like buying your first home).
No matter your goal—buying a property or preparing for retirement—these accounts are designed to help your money grow.
If your income increases, remember to increase your savings budget as well. It’s important to remember that investments carry more risk: their value can go up or down depending on market conditions.
Investment products are not FDIC-insured, are not deposits or obligations of, nor are they guaranteed by Banco Popular de Puerto Rico, its affiliates, and/or subsidiaries; they carry risk and can lose value, including the loss of the principal invested.
IRAs that invest in investment companies, such as mutual funds, are designed to take advantage of the growth potential of financial markets. Their performance is tied to the stock market and is not guaranteed.
Explore traditional and Roth IRA options at our branches, by calling Telebanco Popular, visiting popular.com/en/ira/, or contacting a Popular Securities financial consultant for more information about the Popular Total Return Fund. For legal, tax, or accounting advice, please consult an expert.
We want you to achieve all your financial goals. Don’t put off until tomorrow what you can do today (wink!). Open an IRA, either traditional or Roth, and put your savings to work for you... That extra money could be just what you need.
Learn more about the tools and services available to manage your accounts and help you achieve your goals.
The suggestions and recommendations in these articles are provided solely as financial guidance. If you require advice related to this article, you should seek it from a qualified professional of your choice. Banco Popular de Puerto Rico, its subsidiaries, and affiliates do not provide legal, accounting, or tax advisory services. If you require legal, accounting, or tax advisory services, you should consult a professional specializing in these areas.
Popular Roth IRA, Stock Market Roth IRA, Regular IRA, and Stock Market IRA are products offered by Banco Popular de Puerto Rico. Member FDIC. Banco Popular offers numerous investment options for IRA accounts. You can obtain detailed information at any of our branches or at www.popular.com/en/ira to determine which investment option best suits your needs. Applicable fees for IRA accounts: Processing fee: $5 per instrument for withdrawals and refunds of excess contributions before age 75; $50 per instrument for transfers to another eligible institution; and garnishment fees. Penalties for early withdrawals or cancellations may apply to some IRA accounts. Puerto Rico Department of the Treasury penalties may apply to non-qualified withdrawals. Local law requires the bank to withhold 10% of the amount withdrawn if the withdrawal is for a non-qualified reason.
Popular Roth IRA: Interest earned on contributions to a Popular Roth IRA is tax-free if distributed for a qualifying reason or after age 60. Principal and interest are FDIC-insured to the maximum allowed by law. Certain restrictions apply. Once the account is opened, no further deposits or withdrawals are permitted until the maturity date. Interest is calculated daily on the daily balance and credited monthly. Interest is calculated using the daily balance method, which applies the daily periodic rate to the account principal each day. When an account is opened or a deposit is made by check, interest begins accruing on the business day the transaction is made. Renewal is automatic at maturity for periods of equal duration and applies the rate in effect at the time of renewal. There are no grace periods for IRA renewals. Penalties for early withdrawals or cancellations are equivalent to 180 days of interest.
Stock Market Roth IRA: Interest earned on contributions to a Stock Market Roth IRA is tax-free if distributed for a qualifying reason or after age 60. The principal is FDIC-insured up to the maximum allowed by law. After opening a Stock Market Roth IRA, no further deposits may be made. Partial withdrawals are not permitted before the maturity date. The interest payable at maturity of the Stock Market Account will be calculated using the formula disclosed in the Addendum to the Individual Retirement Account (IRA) Agreement at the time of deposit. For details, please refer to the Stock Market Products Disclosure document. “Standard & Poor’s®”, “S&P®”, and “S&P 500®” are registered trademarks of Standard & Poor’s®, a division of McGraw-Hill, Inc., and have been authorized for use by Popular Inc. The product(s) is/are not sponsored, endorsed, sold, or promoted by Standard & Poor’s®, and Standard & Poor’s® makes no representation advising investment in this product. Please refer to the Individual Retirement Account Agreement for further information regarding, among other things, how interest is calculated. Upon maturity, the account does not automatically renew into another Stock Market Roth IRA, and the entire balance is invested in a five-year Popular Roth IRA. Early termination penalties are 30% of the principal in the first year, 25% in the second year, 20% in the third year, 15% in the fourth year, and 10% in the fifth year.
Regular IRA: The principal and interest are FDIC-insured up to the maximum allowed by law. Certain restrictions apply. Once the IRA is opened, no additional deposits or withdrawals are permitted until the maturity date. Interest is calculated daily on the daily balance and credited monthly. Interest is calculated using the daily balance method, which applies the daily periodic rate to the account principal each day. When an account is opened or a deposit is made by check, interest begins accruing on the business day the transaction is made. Renewal is automatic at maturity for periods of equal duration and applies the rate in effect at the time of renewal. There are no grace periods for IRA renewals. Penalties for early withdrawals or cancellations are equivalent to 180 days of interest.
Stock Market IRA: The principal is FDIC-insured up to the maximum allowed by law. After opening a Stock Market IRA, no additional deposits may be made at any time. Partial withdrawals are not permitted before the maturity date. The interest payable at maturity of the Stock Market Account will be calculated using the formula disclosed in the Addendum to the Individual Retirement Account (IRA) Agreement at the time of deposit. For details, please refer to the Stock Market Products Disclosure document. “Standard & Poor’s®”, “S&P®”, and “S&P 500®” are registered trademarks of Standard & Poor’s®, a division of McGraw-Hill, Inc., and have been authorized for use by Popular Inc. The product(s) is/are not sponsored, endorsed, sold, or promoted by Standard & Poor’s®, and Standard & Poor’s® makes no representation advising investment in this product. Please refer to the Individual Retirement Account Agreement for more information regarding, among other things, how interest is calculated. Upon maturity, the account does not automatically renew into another Stock Market product, and the entire balance is invested in a five (5)-year Regular IRA. Early termination penalties will be 30% of the principal in the first year, 25% in the second year, 20% in the third year, 15% in the fourth year, and 10% in the fifth year.
Popular Total Return Fund IRA: A product offered by Popular Securities, LLC. Investors should carefully consider the Investment Fund’s investment objectives, risks, fees, and expenses before investing. This and other important information are contained in the prospectus and prospectus summary. You can access the prospectus at banco-popular-total-return-fund-inc-pro-20250801.pdf. Read it carefully before investing. Investment products are not FDIC-insured, are not deposits or obligations of, nor guaranteed by Banco Popular de Puerto Rico, its affiliates and/or subsidiaries. They carry risk and may lose value, including the loss of principal. Investment products and services are offered by Popular Securities, LLC, a registered broker/dealer and member of FINRA and SIPC. Investment advisory services are offered through Popular Securities, LLC, an SEC-registered investment advisor. Popular Securities, LLC is a subsidiary of Popular, Inc. and an affiliate of Banco Popular de Puerto Rico. Popular, Inc. and Banco Popular de Puerto Rico are not registered securities brokers or registered investment advisors. Garnishment fee: $50. Processing fee: $5 per instrument for withdrawals and refunds of excess contributions before age 75, and $50 per instrument for transfers to another eligible institution. Puerto Rico Department of the Treasury penalties may apply to non-qualified withdrawals. Initial fund management fee: 1% of the invested amount. Please refer to the prospectus for updated information on the annual fund management fee. Local law requires the bank to retain 10% of the amount withdrawn if the withdrawal is for a non-qualified reason.
