Traditional Individual Retirement Accounts (IRAs)

A Traditional Individual Retirement Account (IRA) may provide you significant immediate tax savings, and due to the deferral of all taxes on earnings, the power of compound earnings is strengthened.

You can contribute to a Traditional IRA if you earn compensation and you will not reach age 70½ by the end of the year. Earnings in a Traditional IRA are not taxed until they are withdrawn. The ability to defer taxes on the earnings, and to withdraw in a year when you may be in a lower tax bracket, can mean more after-tax dollars for your retirement.

With a Traditional IRA:

  • Earnings accumulate tax-deferred
  • Contributions are tax-deductible if you qualify

 The annual contribution limit on a Traditional IRA for someone under age 50 is $5,500. The annual contribution limit for someone age 50 or older is $6,500.

Roth Individual Retirement Accounts (Roth IRAs)

Roth Individual Retirement Accounts (Roth IRAs) offer unique and exciting savings opportunities, and they’ve gotten better over the years. Roth IRAs give many Alabama Credit Union members an easy and safe way to plan for the future.

Unlike traditional IRAs, contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free. Of course, you must conform to certain tax requirements to get this tax-free advantage.

With a Roth IRA:

  • Contributions are allowed at any age
  • Qualified distributions are tax-free
  • Flexible withdrawal options are available

The annual contribution limit on a Roth IRA for someone under age 50 is $5,500. The annual contribution limit for someone age 50 or older is $6,500.

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IRAs at Alabama Credit Union are federally insured up to $250,000 per member (separate from your other Alabama Credit Union accounts) by the National Credit Union Administration and backed by the full faith and credit of the U.S. Government. Accounts are additionally insured to $250,000 per member by Excess Share Insurance. That gives you up to $500,000 in deposit insurance protection for your IRA accounts at Alabama Credit Union.

Retirement Planning

Are you on the right path for a comfortable retirement? Take the Retirement Road Test™ provided by MEMBERS Financial Services to help you plan ahead.

After completing the Retirement Road Test™ feel free to contact one of our knowledgable MEMBERS Financial Service Representatives to learn more information about planning for your future. 

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