Savings

Traditional IRA

A Traditional IRA is a tax-advantaged arrangement that allows earnings and deductible contributions to grow tax-deferred. That means you don't pay income taxes on the earnings and deductible contributions of your IRA until you begin taking withdrawals, usually after you retire and are likely to be in a lower tax bracket.

FedChoice IRAs are insured up to $500,000!^*

Tax advantages

Contributions may be deductible from your gross income on your federal income tax return for the year in which the contributions are made. Earnings grow on a tax-deferred basis. Deductible contributions and earnings are subject to federal income tax when withdrawn.

Eligibility requirements

You must not attain the age of 73 during the year you contribute to a Traditional IRA. You must also have earned income (compensation) in order to contribute to a Traditional IRA.

For more information, check out our IRA Service Center to:

• Learn About IRAs: Make an informed decision about your retirement with complete descriptions of the Traditional, Roth and Coverdell ESAs.
• Open an IRA: This section provides the documents you need, supported with online help, to open a Traditional, Roth or Coverdell ESA.
• Service an Existing IRA: IRA transactions couldn't be easier. Simply follow the onscreen instructions to make quick and easy transactions.

One of the biggest benefits that attracts people to a traditional IRA is that some or all of their contributions may be tax deductible. Keep in mind that you must have earned income and be under age 73 to contribute to a traditional IRA. Additionally, you will be required to take minimum distributions from your account beginning at age 73.

You may add to any of your Individual Retirement Account Certificates during its term without affecting the maturity date. This makes them ideal for automatic payroll allotment.

How much can I contribute?

Learn more about the annual limits for contribution on the IRS website!

*Deposits are insured up to $500,000. Your savings are insured up to $500,000. The first $250,000 per member is insured by the National Credit Union Association (NCUA), a U.S. Government Agency, with an additional $250,000 of coverage provided by Excess Share Insurance Corporation (ESI), a private corporation.