Traditional IRAs generally are the most common IRA opened in the retirement market today, offering a variety of tax benefits for you now and also in retirement.

Key characteristics and benefits:

  • Traditional IRAs allow for contributions that may be tax-deductible, depending on your income level.
  • You may have access to immediate tax advantages such as deductible contributions.
    • Traditional IRAs can potentially give you a tax break now.
      • This is dependent on your tax circumstances.
    • Contributions to a Traditional IRA must also abide by the IRA contribution guidelines and the limits for the year. Refer to the IRS website for details.
    • We strongly advise you to seek advice from a tax professional to determine your eligibility to complete a Traditional IRA contribution and if you are able to deduct it from your taxes.
  • The earnings (dividends) in your IRA Savings and/or your IRA Certificates in your Traditional IRA Certificates also grow tax-deferred.
    • Earnings are not reported to the IRS.
    • When you are ready to withdraw, you only pay taxes on the amount you withdraw from the Traditional IRA, or when you are of age and you are mandated to complete your Required Minimum Distribution (RMD).
  • There are currently no annual service fees on EECU IRAs.
  • Another benefit of any EECU IRA type is that you have access to distribute your assets at any time.
    • Withdrawing from other retirement plans often requires a life-changing event and can be more complicated.
    • Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.
      • Consider the possible tax consequences of a withdrawal.

Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.