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It is never too early to start planning for your retirement. The Local FCU can help you save for retirement with a Traditional or Roth IRA. There is no minimum deposit and both IRA plans are available as savings accounts or share certificates (CDs). Dividends are compounded and paid based on the terms and conditions set forth in the Truth-In-Savings Disclosure. Both IRA plans have unique characteristics which can be reviewed below.


Traditional IRAs are valuable long-term savings tools that can provide safety and security for you and your family. Your contributions can be deducted from your taxable income, reducing the income taxes you are currently paying.

Traditional IRA Features:

  • Can be opened and funded without any employer participation
  • Contributions and/or earnings are tax-deferred until retirement
  • Possible deductions based on retirement plan participation and income
  • Provide full accessibility to your funds with a 10% early distribution penalty if younger than 59½ years
  • Completely flexible as there is no minimum contribution in any year
  • 50 years old and under may contribute a maximum of $5,500 per year and over 50 years of age $6,500


Roth IRAs offer you an easy way to plan for the future of you and your family. Your contributions are not tax-deductible but the earnings within a Roth IRA are tax-free as long as your funds have been in the account for at least 5 years and you are either over 59½ years of age, disabled, or buying your first home.

Roth IRA Features:

  • The money you contribute to a Roth IRA has already been taxed. So the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines.
  • Roth IRAs enable the money you contribute to grow tax-deferred. If you do not withdraw any of the earnings until you have had the IRA for at least 5 years and have a qualifying event, those earnings become tax-free
  • There is no 70½ year age limit on making contributions. You do, however, need earned income, which is defined the same as for Traditional IRAs. As long as you satisfy the Roth IRA requirements, you may contribute to a Roth IRA, even after the year in which you reach 70½ years.

To view current rates click here or click here for the retirement calculator.