Key Features
- Competitive Dividends
- No Monthly Service Fee
- Free Digital Banking
- Establish Membership
- Competitive Dividends
- No Monthly Service Fee
- Free Digital Banking
- Establish Membership
Details
- Traditional and Roth IRA options
- Annual contribution limits apply (see current contribution limits; $6,000 as of 2020)1
- Additional $1,000 “catch-up” contribution allowed for ages 50+
- Funds can be used to purchase CDs within IRA
- $25 minimum deposit to open
Traditional Vs. Roth
There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at the time of retirement.
Traditional IRA
- No income limits to open
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax1
- Earnings are tax-deferred until withdrawal (when usually in the lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals are subject to penalty2
- Mandatory withdrawals at age 70½
Roth IRA
- Income limits to be eligible to open Roth IRA3
- Contributions are NOT tax-deductible
- Earnings are 100% tax-free at withdrawal1
- Principal contributions can be withdrawn without penalty1
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest are subject to penalty2
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
1Subject to some minimal conditions. Consult a tax advisor.
