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Traditional IRA

Plan ahead by saving now for retirement

Worry less about having enough money to retire. A traditional IRA is a great way for you to start saving now.

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Overview

It's important to plan for your future and prevent financial shortcomings. With a traditional IRA, feel confident in your financial future so you can enjoy your golden years without worrying about money.

Highlights

Tax-deductible contributions*

Save money while you are building your retirement! Instead of paying taxes on your retirement contributions now, you can pay them when you withdraw money after you retire.

No maximum income limits

You do not need to meet certain income requirements to start saving with a traditional IRA, making retirement saving even easier.

Multiple investment options

You can invest in a variety of stocks, bonds, money markets, certificates of deposit, mutual funds, or ETFs with your traditional IRA account.

Tax-free growth*

After setting up a traditional IRA account, you may not have to pay taxes annually on the earnings inside of it to help your earnings grow faster.

Penalty-free withdrawals for certain expenses

You can withdraw up to $10,000 in earnings penalty-free to cover certain qualifying expenses, such as first-time homebuyer expenses.

Good to know

Contribution limits

There is a $6,000 annual contribution limit, or a $7,000 annual limit if you are 50 or older as of 2021. Annual contributions cannot exceed your annual compensation (this excludes rental income, investment income, Social Security income, pension income, etc.).

Withdrawal penalty fees

It is important to note that if you withdraw earnings before the account is 5 years old, or if you are below the age 59½, there is a 10% penalty fee. You can always withdraw your own contributions penalty-free.

Opened by you

Unlike a 401(K) provided by your employer, you must open your own IRA and make contributions to it annually.

Distributions are taxed

When you withdraw funds from a traditional IRA, your distributions are taxable based on the tax bracket that you are in at the time. Additionally if you are below the age of 59½, there is an additional 10% tax penalty.

Required minimum distributions (RMDs)

Depending on when you are born, when you reach the age of 70½ or 72, you will need to start accepting required minimum distributions (RMDs) from your retirement savings.

Your hard-earned money is safe

  • a-plus-stability-rating

    Rated one of 21 strongest credit unions in the US by Weiss Ratings in 2021

  • 4th-healthiest-cu

    Rated 4th healthiest credit union in the US by Glatt Consulting HealthScore in 2020

Have a question?

At RCU, we're known for our reliable service, and we'll answer your questions and calls quickly. Go ahead:ย send us a question or give us a call.

It's never too early to start planning for retirement

A traditional IRA is an excellent way for you start saving now, and you can start regardless of your income level. It is a great way for you to earn funds so when the time comes, your retirement life will be as enjoyable as possible.

  • *Consult your tax advisor regarding tax implications.