Individual Retirement Account (IRA)

Choose from traditional or Roth IRAs, IRA Rollovers or Coverdell Education Savings Accounts. IRAs may save you money because, in many cases, your earnings are tax-deferred, tax-deductible or tax-exempt. Consult your tax advisor regarding your potential tax savings.

Stay on track and up to date with your retirement savings with Retirement Central!

To open an account call us at (602) 264-6421 or toll free at (866) 264-6421 or visit any of our 9 local branches.

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An individual retirement account (IRA) is a type of savings account that has tax benefits for your retirement. Financial experts suggest you should save up 85% of your pre-retirement income in order to retire comfortably. This sounds like a lot, but if you start small, these investments will grow.

For those with employer-sponsored 401(k) plans, you may not be able to save enough. You are eligible to save in both a 401(k) plan and an IRA at the same time. Additionally, some people may not be eligible for 401(k) plans. They may be self-employed or work at a company that does not offer retirement options. An IRA is a personally owned retirement account, meaning it stays with you no matter where you are in your journey to retirement.

There are three main types of IRA.

• Traditional IRA — With this account, you make contributions that you are able to deduct on your tax return. This makes this money tax-deferred until you withdraw it in retirement. If you believe you will be in a lower tax bracket when you retire, a traditional IRA may be beneficial.
• Roth IRA — With a Roth IRA, you contribute money you have already paid taxes on. This money then, hopefully, grows tax-free. When you reach retirement age, you can withdraw Roth IRA funds tax-free under most circumstances.
• Rollover IRA — If you have contributed money to a qualified retirement account, you can roll it over into a traditional IRA. Rollovers mean you move eligible assets from an employer-sponsored plan, like a 401(k), into an IRA.
• Coverdell Education Savings Accounts — These accounts used to be called Education IRAs. This is a type of IRA that is not used for retirement, and is instead used for educational expenses. Much like a 529 plan, a Coverdell Education Savings Account allows tax-free growth and withdrawals on qualified education expenses, including college and K-12 education.

Wanting to find out more? Learn more about the difference between a Traditional and Roth IRA.

• Annual contributions cannot exceed $7,000 if you are under 50, or $8,000 if you are age 50 or older.
• Contributions may be tax deductible in the year they are made, depending on the type of IRA account.
• Investments within the account grow tax-deferred.
• Withdrawals in retirement for traditional IRAs are taxed as ordinary income.
• Withdrawals may begin at age 59 ½ and must begin at age 73.
• Unqualified withdrawals before age 59 ½ may trigger a 10% early withdrawal penalty and are subject to income taxes

Take the first step towards financial security for your future! Retirement Central is your one stop to track and keep up to date with everything there is to know about your savings for retirement.

Some of the featured enhancements you have access to with Retirement Central:

• Open a new IRA account with digital signature or paper copies
• Request transactions
• Information based on different life stages
• Planning calculators (beneficiaries, early payouts, ROTH conversions, etc.)
• Current contribution limits
• FAQs for various retirement accounts

Since 1939, we’ve proudly served Arizona with financial services and benefits that go beyond what regular banks are able to offer. From providing you with higher interest rates on your savings to lower banking fees, we aim to give you a better experience at every step.

1. Account only remains fee-free when either a $1,000 minimum balance is maintained or a monthly direct deposit is made to the account. Otherwise, a monthly service fee will be applied.
2. A $5 minimum balance must be maintained in this account at all times to remain eligible for credit union services and benefits.