Whether you plan to spend your retirement traveling the world or relaxing at home you have to fund those choices. IRAs provide a tax-advantaged investment for retirement. CDC Federal Credit Union offers both the Traditional IRA and Roth IRA. We also offer IRA Certificates for higher savings.

If you're not sure which IRA is best for you, read our Roth vs. Traditional comparison below.

IRAs are separately insured to at least $250,000 by the NCUA.

Traditional IRA

A Traditional IRA provides tax-deferred earnings and possible yearly deductions. To be eligible for a Traditional IRA you must be a taxpayer under the age of 70 with earned income. The Traditional IRA is a good choice if deductible contributions are more important to you than tax-exempt distributions; you have an employer retirement plan but would like to supplement your retirement savings; you do not have another IRA; or you want to split contributions between a Traditional IRA and a Roth IRA.

Roth IRA

With a Roth IRA your withdrawals may receive tax-exempt treatment. There are no age restrictions for the Roth IRA but you must have earned income. To be eligible your modified adjusted gross income must be less than $166,000 for married taxpayers or $105,000 for single taxpayers. With the Roth IRA you are not required to make mandatory withdrawals after age 70 and you can continue to make contributions after age 70 while working.

The maximum annual contribution to a Traditional IRA or Roth IRA cannot exceed the limits in the table below.

Traditional vs. Roth IRA
Contribution Year Under Age 50 Age 50 and Older
2010 $5,000 $6,000
2011 $5,000 $6,000
2012 $5,000 $6,000
2013 $5,500 $6,500

FR051320-E394

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