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Individual Retirement Accounts (IRAs)

What is an IRA?

An Individual Retirement Account (IRA) is a special savings plan authorized by the Federal Government to help you accumulate funds for your retirement.

Who is eligible to contribute to an IRA?

Every individual who has earned income or received alimony may contribute to an IRA. Income from other sources such as investments or inheritances does not qualify. 

What is the difference between a Traditional IRA and a Roth IRA?

The difference between a Traditional IRA and a Roth IRA is simply when you get your tax benefit. For a Traditional IRA, your contributions to the savings plan may be tax deductible the same year you make the contributions. For a Roth IRA, the contributions you make to the savings plan are taxed when you make them, but as soon as you start withdrawing from the account, those withdrawals will not be taxed. Traditional IRAs have an immediate tax benefit, but a Roth IRA has a delayed tax benefit.

RelyOn Credit Union offers a variety of IRA plans. To find out which one is right for you, please contact us at 214-357-3328.