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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Good to know
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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.).
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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.
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Opened by you
Unlike a 401(K) provided by your employer, you must open your own IRA and make contributions to it annually.
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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.
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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
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Rated one of 21 strongest credit unions in the US by Weiss Ratings in 2021
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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.
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.
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*Consult your tax advisor regarding tax implications.
Forms
Traditional IRA Forms
- Application packet
- Contribution eligibility form
- Contribution and investment selection form
- Direct transfer instruction form
- Beneficiary designation/change form
*You may bring all completed forms into any RCU branch or mail it to the following address:
Redwood Credit Union
Attn: Retirement Services
P.O. Box 6104
Santa Rosa, CA 95406-0104
Traditional IRA online application
Not a Member?
Become a Member and open your Traditional IRA account. Review our Membership requirements below to determine if your are eligible.
You can become a Member of RCU if you meet any of the following:
- You live, work or own a business in the counties of Sonoma, Marin, Napa, Mendocino, Lake, San Francisco, Solano, or Contra Costa.
- You are an immediate family member of a current RCU Member.
- You work for a designated Select Employer Group.
All Highlights
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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.
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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.
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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.
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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.
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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.
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Manage your IRA account in online and mobile banking
Open your account, make deposits, withdrawals, and transfer funds within RCU online and mobile banking.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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