IRAs and ESAs

en /
es

Search

Sign In

Traditional
Roth
Educational

The future is whatever you want it to be. Whether you want time with family, world travels, or the opportunity to run your own coffee cart— tax-advantaged accounts can help you get there.

Rates FAQs Traditional vs. Roth IRA

Options to Grow Your Funds

We offer savings accounts as well as longer-term certificates to help you maximize your return.

Feel Confident in Your Decisions

We know accounts with tax implications can be a little confusing. We can walk you through your goals and answer your questions one-on-one.

Tax Advantages to Save Smarter

IRAs (Individual Retirement Accounts) and ESAs (Educational Savings Accounts) are tax-advantaged savings accounts. Generally, Traditional IRAs give you tax advantages during the contribution phase, while Roth IRAs give you tax advantages during the withdrawal phase. ESAs help to save for future education expenses. See the FAQs for more information.

How it Works

1

Open an account

Here’s a simple chart to explain the difference between Roth and Traditional IRAs. When you’re ready, contact us and we will help you get your account set up.

2

Build your savings

Use recurring contributions and put your funds in certificates to maximize your investment.

3

Start your next adventure

Watch your funds build as you decide if you would like to use your money to travel, settle down, or just gain more peace of mind.

Other Accounts and Resources

Compare

We know you hate fees! That’s why all three Fitzsimons checking accounts are completely free. They also have no minimum balance or monthly maintenance fees. Below you can learn about the differences.

Example Comparison Table

Product

Difference

✓

Difference

✓

Difference

✓

Disclosures

FAQs

What are the advantages of a Traditional IRA?

Traditional IRAs may allow for tax-deductible contributions, and the earnings grow tax-deferred until withdrawn. Restriction free withdrawals can be made for a variety of reasons: after age 59½, qualified higher-education expenses, first-time home purchase (maximum $10,000), disability, payment of health insurance premiums while unemployed for 12 weeks or longer, qualifying medical expenses exceeding 7.5% of adjusted gross income, death.

Who can make deductible contributions to a Traditional IRA?

The following people may be able to make tax-deductible contributions:

Single individuals not active in employer retirement plans.
Single individuals active in qualified retirement plans with MAGI below defined limits.
Married couples with neither spouse active in an employer retirement plan.
Married individuals active in qualified retirement plans filing joint tax returns with MAGI below defined limits.
Married individuals not active in qualified retirement plans who are filing joint tax returns with spouses who are active in qualified retirement plans, as long as MAGI is below defined limits.

Are contributions to a Roth IRA tax-deductible?

No, contributions to a Roth IRA are not tax-deductible.

What are the annual contribution limits on a Traditional IRA?

People under 50 may be able to contribute up to $5,500. People who are 50 and older may be able to contribute up to $6,500. Your contributions cannot exceed your compensation.

Who can contribute to a Traditional IRA?

There are three ways to be eligible to contribute to a Traditional IRA:

Anyone under age 70½ who has income from compensation
Anyone under age 70½ who is filing jointly with a spouse who earns compensation.
Anyone who has received a distribution from a qualified retirement plan and decides to move the proceeds of the plan into an IRA.

What advantages does a Roth IRA offer?

Roth IRAs allow you to make tax-free and penalty-free withdrawals on your regular contributions at any time. Unlike a Traditional IRA, you are not required to start withdrawals at age 70½. After the account has been open five tax years, earnings can be withdrawn tax-free and penalty-free for a variety of reasons: age 59½, disability, death, or first-time home purchase. The lifetime limit for exemption on first-time home purchase is $10,000.

What is the annual contribution limit for a Roth IRA?

People under age 50 may be able to contribute up to $5,500. People over age 50 may be able to contribute up to $6,500. Contributions cannot exceed compensation.

Who can contribute to a Roth IRA?

If you earn compensation, and your modified adjusted gross income (MAGI) is under a certain limit, you are eligible to contribute to a Roth IRA. Congress sets the MAGI limits, and they can change frequently. If your MAGI is too high, you might be able to make smaller annual contributions. Consult your tax professional regarding your individual circumstances.

What's the difference between a Traditional and Roth IRA?

Traditional IRAs generally offer more tax advantages in the contribution phase. Roth IRAs generally offer more tax advantages in the withdrawal phase. Consult a tax adviser for more information.

Rates

Rates Effective as of: 11-09-2024

Retirement Rates

Type of Account

Minimum Balance**

Dividend Rate1

APY1

Traditional Contributory IRA †

$25

0.05%

6 Month Traditional IRA Certificate †

$500

1.47%

1.48%

12 Month Traditional IRA Certificate †

$500

1.88%

1.90%

30 Month Traditional IRA Certificate

$500

2.14%

2.16%

60 Month Traditional IRA Certificate

$500

2.71%

2.75%

Contributory Roth IRA †

$25

0.05%

6 Month Roth IRA Certificate †

$500

1.47%

1.48%

12 Month Roth IRA Certificate †

$500

1.88%

1.90%

30 Month Roth IRA Certificate

$500

2.14%

2.16%

60 Month Roth IRA Certificate

$500

2.71%

2.75%

Contributory Education IRA †

$25

0.05%

6 Month Education IRA Certificate †

$500

1.47%

1.48%

12 Month Education IRA Certificate †

$500

1.88%

1.90%

30 Month Education IRA Certificate

$500

2.14%

2.16%

60 Month Education IRA Certificate

$500

2.71%

2.75%

Note:
1. The Dividend Rate and Annual Percentage Yields set forth above are accurate as of the effective date indicated above. If you wish to obtain current rate information please call the credit union at 303-340-3343. Fees could reduce earnings on certain accounts. Penalties may be imposed for early withdrawal.

* Money Market Advantage Accounts pay dividends based on a balance limit rate table. The minimum average daily balance required to receive dividends is $2000.

** At least minimum balance must be obtained to receive dividends. For Share Savings accounts, a minimum balance of $250 must be maintained to receive dividends. See Standard Disclosure for balance to earn dividends.

† Additions allowed

Traditional vs. Roth IRA

Traditional IRA vs. Roth IRA

Traditional IRA

Roth IRA

Yearly Contribution Limit

$6,000 ($7,000 if age 50+)

Income Limits on Contributions

None

Under $139,000 (single); 206,000 (married, filing jointly)

Taxes

Contributions may be taxdeductible

Tax-free withdrawals, but contributions are almost never tax-deductible

Funded With

Pre-tax funds

After-tax funds

Required Minimum Distribution (RMD)

Traditional IRA owners are required to take annual minimum distributions beginning with the year they turn age 72 (or earlier if they turned age 70 ½ in 2019 or before). Your beneficiaries also will be subject to required distributions.*

Roth IRA owners are never required to take distributions. After your death, however, your beneficiaries will be subject to required distributions (unless a spouse beneficiary treats the IRA as their own).

Best for those who believe their tax return will be

Lower in retirement

Higher in retirement

Withdrawing funds

You may withdraw money from your Traditional IRA at any time, subject to federal income tax. If you are under the age 59 ½ you will also be subject to a 10% early distribution penalty tax on any taxable amount taken, unless you qualify for a penalty exception.

You may withdraw money from your Roth IRA at any time, subject to federal income tax. If you are under the age 59 ½ you will also be subject to a 10% early distribution penalty tax on any taxable amount taken, unless you qualify for a penalty exception.

*Required Minimum Distributions have been waived for the 2020 tax year. If you do not want your 2020 RMD processed, please let us know.

Travel Notification

We take debit card security very seriously. Because of the amount of unauthorized transactions that could potentially impact your card, use of your card is limited. Therefore, when traveling please provide us with the following information so that we may do our best to ensure your card can be used while you are traveling. When possible, please provide us as much advance notice as you can. Additionally, if you will be traveling to multiple countries and have an itinerary, please feel free to include with this form.

[gravityform id=4 title=false description=false ajax=true]

Search

Sign In

Go ahead. Dream about the future. We'll show you the practical steps to get there.

Options to Grow Your Funds

Feel Confident in Your Decisions

Tax Advantages to Save Smarter

How it Works

1

Open an account

2

Build your savings

3

Start your next adventure

Other Accounts and Resources

Financial & Estate Planning

Money Market

Compare

Example Comparison Table

FAQs

Rates

Retirement Rates

Traditional vs. Roth IRA

Traditional IRA vs. Roth IRA

Download our Mobile App

Travel Notification

Home Value Look Up

Open an Account

Business Accounts & Loans

Certificate of Deposit Calculator