Individual Retirement Accounts (IRAs)

No two people are alike, so you should choose the retirement savings plan best suited to you. There are distinct advantages to both traditional and Roth IRAs. One of the most obvious differences is the time at which you see the greatest advantage. A traditional IRA provides potential tax relief right away, while a Roth IRA has the potential for the greatest long-term tax benefit, so when you decide to retire, you'll be set.

Traditional IRA

Tired of waiting for good news? A traditional IRA from Revity Credit Union offers immediate tax savings since contributions can be deducted from your current annual returns.

The interest earnings do not incur taxes until withdrawal. This provides a second advantage, since the tax will be subject to a lower tax bracket once you're retired. You call the shots, and we'll take care of everything else.

• No income limits to open
• No minimum contribution
• Contributions are tax deductible on state and federal income tax*
• Earnings are tax deferred until withdrawal (a time when the member is usually in a lower tax bracket)
• Withdrawals can begin at age 59 ½
• Early withdrawals subject to penalty**
• Mandatory withdrawals at age 70 ½

Roth IRA

Be kind to your future self! For some, a Roth IRA can be the better option than a traditional IRA. The most significant difference between the two is when you pay the taxes.

You can't deduct contributions from a Roth IRA, but your interest earnings are completely tax-free upon withdrawal. So, while you can't lower your taxes today, you stand to gain bigger tax-free savings in the end. Another advantage comes in the form of principal contributions (but not interest) withdrawn without penalty.

• Income limits to be eligible to open Roth IRA***
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal*
• Principal contributions can be withdrawn without penalty*
• Withdrawals on dividends can begin at age 59 ½
• Early withdrawals on dividends subject to penalty**
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

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