Retirement Savings

Prepare for retirement with an SVFCU Traditional or Roth IRA.

To open an Individual Retirement Account, you will first complete an IRA application and designate beneficiaries. There is no minimum initial deposit for your new IRA and no set-up fee. Your IRA, whether it is a Roth or Traditional, will be a new sub-account called an IRA Accumulation Account (the equivalent of Regular Shares, but where your Roth or Traditional IRA funds are kept separate for tax purposes.)

Once you have created the IRA, you can fund the account in several different ways:
  • Deposit funds from a qualified retirement plan by way of rollover or direct transfer (which you choose will depend on the circumstances)
  • Make periodic deposits over the counter, or
  • Establish ACH direct deposit or payroll deduction to make saving regularly convenient.
The funds in your IRA may remain in the IRA Accumulation suffix of your account, or to increase earnings, they can be moved to an IRA Certificate for terms ranging from six months to three years. The minimum balance for an IRA Certificate is $500. An Early Withdrawal fee will apply if the funds are withdrawn during the term of a Certificate. To move IRA funds from your Roth Accumulation or Traditional IRA Accumulation account into a certificate, simply contact the office.

Choosing Between Traditional and Roth

There is no substitute for professional guidance: Please consult a tax professional for more information, personalized to your own circumstances.

There are advantages to both Traditional and Roth IRAs. One of the biggest differences between the two lies in when you choose to receive the tax savings — now or during retirement. A Traditional IRA provides potential tax relief today, while a Roth IRA has the potential for more tax benefit later.

SVFCU charges no setup fee for either the Traditional or Roth IRA and no monthly or annual maintenance fees are assessed.

Traditional IRA

  • No maximum income limits to contribute
  • No minimum contribution requirement
  • Contributions may be tax deductible on state and federal income tax1
  • Earnings are tax-deferred until withdrawal
  • Voluntary withdrawals can begin penalty-free beginning at age 59½. (Early withdrawals subject to penalty.)
  • Mandatory withdrawals (called Required Minimum Distributions, or RMDs) begin at age 70½
  • Anyone under the age of 70½ with earned income can contribute to a Traditional IRA
  • Higher 'catch-up' contribution limits for those over age 50

Roth IRA

  • Contributions are made with post-tax money
  • Tax- and penalty-free distributions may begin at age 59½1
  • Contributions (but not earnings) can be withdrawn without penalty at any time
  • Early withdrawals of earnings subject to tax and penalty
  • No mandatory distribution age
  • Earned income is required, but there is no age restriction. (There are income limits for Roth IRAs.)
Open an IRA


Your Retirement Savings at SVFCU are Insured

Your retirement savings accounts at Susquehanna Valley FCU are insured to at least $250,000 by the Federal Government through the National Credit Union Administration (NCUA), which receives the highest ranking from deposit insurance experts as the healthiest of the federal insurance funds.

1. Consult a tax adviser for information. * APR = Annual Percentage Rate.


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