Individual Retirement Accounts (IRA)

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Roth IRA vs. Traditional IRA—Find the Right Retirement Plan for You

Choosing between a Roth vs. a Traditional IRA? Both offer great tax advantages, but the right choice depends on your financial goals. Work with Cyprus Credit Union to find what works best for your retirement strategy.


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Traditional IRAs—Tax-Deferred Savings for Your Future

A Traditional IRA allows you to save for retirement with tax-deductible contributions (if you qualify) and tax-deferred earnings. Withdrawals after age 59½ are taxed as ordinary income. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term retirement savings plan.

With a traditional IRA, you can:

  • Keep more - Accumulated earnings are tax-deferred
  • Save money - Contributions are tax-deductible if you qualify
  • Save more - The amount you can contribute is increasing
  • Withdraw earlier - Normal withdrawals (without penalty) can begin at age 59½

Roth IRAs—Tax-Free Withdrawals

A Roth IRA is a pre-taxed retirement savings account. Your account is taxed upfront, so every contribution you make helps your savings grow tax-free. Although Roth IRA contributions are not tax-deductible, earnings are tax-exempt if withdrawn after age 59½ and are distributed after the five-year holding period. This makes Roth IRAs a flexible option for retirement savings. 

IRA Contribution Limits and Catch-Up Contributions

Contribution limits increase over time, allowing you to save more. If you’re over 50, you can make catch-up contributions to boost your retirement savings even further.

Start Saving for Retirement–Open an IRA Account Today!

Get started with a tax-advantaged retirement savings plan. Open a Traditional or Roth IRA with Cyprus Credit Union. Open an account below or visit any of our branch locations to speak with a financial expert.

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FAQs

What’s the difference between a Roth IRA and a Traditional IRA?
The difference is how they’re taxed; Roth IRAs are taxed upfront, while Traditional IRAs are taxed at retirement. 
Can you have a Traditional and Roth IRA at the same time?
Yes! You can contribute to Traditional and Roth IRAs to maximize your retirement savings. 
What happens if I withdraw from my IRA before age 59 1/2? 

Withdrawing early from a Traditional IRA can incur a 10% penalty tax plus regular income tax. With a Roth IRA, you can make tax and penalty-free withdrawals. There are exceptions to each; consult with our financial experts to learn more. 

Which is better: a Roth IRA or a Traditional IRA?

While each account has its advantages, what you choose ultimately depends on your retirement strategy. Consult with our financial experts to find what works for you.

 

 

 

Certificates

APY as high as 4.40%

Money Market

APY AS HIGH AS 4.10%

Share Savings

APY .05%
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