What is an IRA?

When it comes to financial planning, especially for your golden years, it’s important to know what tools are out there to help you save. (More savings = less stress.)

That’s where IRAs come in. They have a bunch of perks and features, which is why they’re a popular option for so many people looking to take charge of their money.

What is an IRA?

An IRA is like a special savings account you set up at a financial institution. It can be your go-to place to save for retirement. With the different IRA options, your money can grow either tax-free or with taxes on hold until you're all set to kick back in retirement.

Traditional vs. Roth.

Like we said before, when it comes to retirement plans, one size doesn’t fit all. That’s true for IRAs as well. Let’s look at two of the most common options.

Traditional IRA:

Consider this the classic option. Your contributions may be tax-deductible, offering a chance to lower your taxable income.

The earnings within the account grow tax-deferred until you decide to make qualified withdrawals during retirement. *

Roth IRA:

On the flip side, we have the Roth IRA – a modern player in the retirement savings arena.

While contributions aren't tax-deductible, the real magic unfolds during retirement. Qualified withdrawals are tax-free, offering a flexible source of income. *

Need to tap into your contributions early? No problem. Roth IRAs allow penalty-free withdrawals of your contributions at any time.

STCU offers two IRA options (Traditional and Roth) for individuals and one for self-employed or business owners (Simplified Employee Pension). You can find more information on their differences here.

STCU’s IRA features.

What sets IRAs apart from the financial crowd? We can’t speak for all of them, but here are a few things we think are great about ours:

• There’s no minimum amount required to open an IRA savings account and there’s a $500 minimum to open an IRA certificate.
• It’s easy to set up automatic deposits to fund your IRA year-round. Call (800) 858-3750 or visit any STCU branch location to set up regular deposits on a schedule that fits your budget.
• You can tap your IRA funds, if needed, to pay for tuition, medical bills, or your first home purchase.*
• They’re federally insured up to $250,000 by the NCUA.

You can learn more about STCU’s IRAs on our IRA webpage.

IRAs are more than a place to save and invest your money. They can be the ticket to a worry-free retirement. So, why wait? Start building for your future now with an STCU IRA.