Individual Retirement Accounts

Whether you plan to retire at age 35 or age 65 it's never too early to begin saving. An Individual Retirement Account (IRA) is a great way for you to insure your financial future. Best of all, you now have a number of options when choosing an IRA. Click on the link below the table to learn more about your IRA options. Then, if you have questions, please contact a Metro Credit Union Financial Service Representative. We'll be happy to get you the information you need to make the best decision. To open an IRA account please contact us.

Details	Traditional IRA	ROTH IRA
Definition	You make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow tax-deferred until you withdraw them in retirement. Many retirees also find themselves in a lower tax bracket than they were in pre-retirement, so the tax-deferral means the money may be taxed at a lower rate.	You make contributions with money you’ve already paid taxes on (after-tax), and your money may potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.
Income Restrictions	No income restrictions on eligibility to contribute, but possibly on deductibility.	You may not be eligible to contribute if your income is $137k or more in tax year 2019 and $139k or more in tax year 2020 for single filers or $193k or more in tax year 2019 and $196k or more in tax year 2020 for joint filers.
Contributions	Contributions may be tax-deductible.	Contributions may be withdrawn at any time without taxes or penalties.
Earnings	Earnings grow tax-deferred. You generally pay taxes when you make withdrawals, often in retirement.	Earnings may be withdrawn tax-free and penalty-free once you reach age 59½ and the account has been open for at least five years.
Taxes	Pay taxes later.	Pay taxes now.
Age restrictions	None for taxable years beginning in 2020.	No age restrictions for contributions.
Required minimum distributions (RMDs)	Must begin taking required minimum distributions (RMDs) at age 72. (70 ½ if you reach 70 ½ before January 1, 2020).	No RMDs.

Individual Retirement Account Resources

• Exploring Your IRA Options 
• Roth IRA
• Traditional IRA
• Taking a Closer Look at Roth Eligibility
• Growing Your Savings
• Moving into a Roth IRA
• Rolling Your Way to a Better Retirement
• Securing Retirement One SEP at a Time
• Balancing Raising Health Care Costs
• Coverdell Education Savings Accounts