Traditional and Roth IRAs
It's never too early to start planning for your retirement. We offer both Traditional and Roth IRAs to help you start planning for your financial future.
Benefits of a Credit Union Roth IRA or Traditional IRA
- Get started with as little as $10.00
- No enrollment or annual maintenance fees
- Possible tax-advantaged ways to save and invest for retirement
- IRA funds are secured by the NCUA
IRA Considerations
- Limits to contribution amounts
- Penalties for early withdrawals
Credit Union Roth IRA vs. Traditional IRA
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Contributions | You can contribute if you or your spouse, if filing jointly, have taxable compensation May be tax-deductible | You can contribute at any age if you, or your spouse, if filing jointly, have taxable compensation and your modified adjusted gross income is below certain limits Not tax-deductible |
Withdrawals | You must withdraw part of your tax-deferred savings each year, starting at age 72 If you withdraw less than your RMD, you may owe a 50% penalty tax on the portion you didn't withdraw | Withdrawals may be taken after age 59 1/2 Withdrawals may be taken after a five-year holding period and may be classified as qualified distributions Exceptions to the early withdrawal penalty include but are not limited to: first-time home purchase, college expenses, and birth or adoption expenses |
Required Minimum Distributions (RMD) | You must start taking distributions by 4/1 following the year in which you turn 73 | No minimum distribution requirements |
If you'd like more information regarding IRAs, visit the Internal Revenue Service's website.
If you are not sure which IRA is right for you, contact us, we have staff available to help.