Individual Retirement Accounts (IRAs)

You may not think of retirement savings as an investment, but that's exactly what it is—an investment in your future. The earlier you start, the better set you'll be.

Stop by CFSB today, and an expert advisor can help you set up a plan based on your retirement goals. Choose from a traditional or Roth IRA and benefit from their unique, accompanying tax benefits. Get your plans and tackle box in order for your dream retirement.

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Summary
  • Tax-advantaged retirement savings*
  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase CDs within IRA
  • Automatic deposits available to make saving easier ($25 minimum)
  • Subject to dormancy fee for account inactivity**
  • $50 minimum deposit to open

See our current interest rates.

Fees may reduce earnings.

*Consult a tax advisor.

Accounts with no activity for one year and balance less than $100.00 will be assessed a $5.00 monthly dormant fee.

Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution in any year allowing flexibility
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70½
  • Members under age 70½ may contribute $5K maximum per year

Roth IRA

  • No minimum amount to set up
  • 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  • Principal contributions can be withdrawn without penalty*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 59½
  • Early withdrawals on dividends subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.

Custom ImageIndividual Retirement Accounts (IRAs)