IRAs offer yet another way to save for retirement. They allow you to keep your money in different kinds of financial vehicles depending on your retirement goals, including IRA CDs, IRA savings, mutual funds, money markets, stocks, and bonds. IRAs also offer certain tax advantages and benefits.
| Features | Roth IRA | Traditional IRA |
|---|---|---|
| Tax Advantages Contributions |
Not tax-deductible | May be tax-deductible |
| Earnings | Tax-deferred and possibly tax free if you meet eligibility requirements | Taxes are deferred until you begin withdrawing funds |
| Contributions Maximum contributions |
2022: Up to $6,000 for those under 50; $7,000 for those 50+ 2023: Up to $6,500 for those under 50; $7,500 for those 50+ |
|
| Eligibility | No age restrictions However, contributions may be limited depending on MAGI tables |
Anyone with earned income may contribute |
| Withdrawals Tax/penalty consequences |
Contributions can be withdrawn anytime without taxes or penalties Earnings can be withdrawn, without taxes or penalties, if you’re at least 59 ½ and your account has been open for 5 years or more |
All earnings and deductible contributions are taxable upon withdrawal Penalties will be assessed if withdrawals are taken before age 59 ½, or if withdrawals are not taken by age 73 |
| Distribution requirements | None | Required minimum distributions upon reaching age 73 |
| Exceptions to penalties | Some exceptions are made if funds are used for a first-time home purchase, education or certain medical expenses | |
Vantage IRA CDs and IRA Savings Accounts
- Excellent long-term savings vehicle
- Tax advantages (consult with your tax advisor)
- Flexible options include low minimum balance requirements, such as $25 on IRA savings, and IRA CDs with a minimum balance as low as $500, competitive rates and an assortment of terms, from 1 to 5 years
- Easier to manage than other retirement accounts
- Both Traditional and Roth IRAs available
- All your deposits at Vantage Credit Union are insured up to $250,000 by the National Credit Union Administration (NCUA)
You can learn more about IRAs via our Retirement Central site, where members can review their options, access life-stage planning tools, and open, contribute or withdraw from their IRA.
All your deposits at Vantage Credit Union are federally insured up to $250,000 by the National Credit Union Administration (NCUA).