Retirement Savings
Choose which IRA is Right for You*
| Traditional IRA | Roth IRA | |
|---|---|---|
| Fund account with pre-tax dollars | Yes** | No |
| Fund account with after-tax dollars | No | Yes |
| Able to withdraw contributions before age 59.5 penalty-free | No | Yes |
| Able to withdraw earnings before age 59.5 penalty-free | No | No |
| Income requirements to qualify | No | Yes |
| Required minimum distributions after age 73 | Yes*** | No |
**Deduction limits apply. Refer to IRS rules www.irs.gov
***Distributions are required by age 73
Getting Started
To open an Individual Retirement Account, you will first complete an IRA application and designate beneficiaries. You can do this by completing an application at our office. 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 (depending on your 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 An Early Withdrawal penalty will apply if the funds are withdrawn during the term of a Certificate.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 our Member Service Team.
Or consult a qualified tax professional for more information.
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.
