Individual Retirement Account (IRA)
Flexible options that give you the power to choose how and when you save for retirement.
Account Details
Traditional or Roth IRA
Federally Insured by NCUA
Certificates of Deposit (CDs)
Share Savings Account
Traditional IRA
Contributions are tax deductible if you are single, or married and neither spouse is an active participant in a qualified retirement plan, regardless of income. Many retirees find themselves in a lower tax bracket than they were in pre-retirement, so the tax-deferral means the money may be taxed at a lower rate. Penalty-free withdrawals before age 59 for first-time home purchases or to pay for qualified higher education expenses.
You can choose to open either a share savings account or certificate of deposit for this type of IRA.
Roth IRA
Earnings grow tax-free on after-tax contributions, and can be withdrawn penalty-free for a first-time home purchase, higher education expense, medical expenses, in the event of your death or permanent disability, or if you are at least 59 ½ years of age. You can choose to open either a share savings account or certificate of deposit for this type of IRA.
Traditional or Roth IRAs must be opened in a branch:
IRA & Roth IRA Certificate3.05% APY*Additional deposits allowed with $25 minimum; yearly IRS contributions limits.
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| Minimum Opening Deposit: $2,500 | ||
| Term | Interest | APY* |
| 12 months | 3.92% | 4.00% |
| 18 months | 3.78% | 3.85% |
| 30 months | 3.39% | 3.45% |
| 36 months | 3.20% | 3.25% |
| 48 months | 3.10% | 3.15% |
| 60 months | 3.01% | 3.05% |
Ready to open an Individual Retirement Account (IRA)?
Benefits of an IRA
Tax Advantage
Save money for retirement with tax-free growth or on a tax-deferred basis.
Supplement Your 401(k)
You can contribute to both a 401(k) and an IRA for maximum retirement savings.
Flexible Options
Choose between IRA account types to best suit your needs and goals.
What's the difference?
Click the "Compare IRA Options" button to see a comparison chart highlighting similarities and differences between the two account types.
Compare IRA options
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| Features | Traditional IRA | Roth IRA |
|---|---|---|
| Who can contribute? | You can contribute if you (or your spouse if filing jointly) have taxable compensation but not after you are age 70½ or older. | You can contribute if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see below). |
| Are my contributions deductible? | You can deduct your contributions if you qualify. | Your contributions are not deductible. |
| Do I have to take required minimum distributions? | You must start taking distributions by April 1 following the year in which you turn age 70½ and by December 31 of later years. |
Not required if you are the original owner.
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| Are my withdrawals and distributions taxable? | Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception. |
None if it’s a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.
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| Features | Applies to Traditional IRA & Roth IRA |
|---|---|
| How much can I contribute? |
The most you can contribute to all of your traditional and Roth IRAs is the smaller of:
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| What is the deadline to make contributions? | Your tax return filing deadline (not including extensions). For example, you can make 2018 IRA contributions until April 15, 2019 |
| When can I withdraw money? | You can withdraw money anytime. |
Frequently Asked Questions
To open an IRA savings account or certificate of deposit, please visit one of our branches.
Yes, both the Traditional and Roth IRA account funds opening through Neighborhood Credit Union are federally insured by the National Credit Union Administration (NCUA) up to $250,000.
Visit IRS.gov to learn more about IRA contribution and deduction limits, distributions, and beneficiaries.
*APY = Annual Percentage Yield. Certificate of deposit rates effective October 17, 2024. Savings account rates effective October 1, 2024. Please see the certificate Truth-In-Savings Disclosures(Opens in a new Window) for more details.