Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

It’s never too early to start planning for your future.

Individual Retirement Accounts (IRAs) are tax-advantaged savings programs that allow you to begin saving for your retirement, whether you are starting your first job or you are nearing the end of your professional career.

USSFCU can help you devise a savings strategy that best serves your retirement goals. USSFCU offers both Traditional and Roth IRAs, each of which has its own distinct tax advantages. Call us today to find an IRA savings strategy that works best for you.

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Retirement Central 

Understand, Plan and Execute Your Retirement Savings Plan — all from one central location! 

Retirement Central is an excellent resource for any stage of retirement planning. Learn about different types of IRAs, determine your eligibility to contribute, open accounts and perform transactions. Access expert articles and a wide-variety of retirement calculators and planning tools to help design a retirement strategy that meets your personal objectives.

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USSFCU offers both Traditional IRAs and Roth IRAs to help its members save for retirement. Either may be opened as a savings account or a term certificate. Despite some different characteristics detailed in the comparison below, both Traditional and Roth IRAs at USSFCU share the following common elements:

  • Competitive dividend rates above standard savings rates
  • No set up fees or monthly/annual maintenance fees
  • A very low $5 minimum balance
  • The ability to purchase Share Certificate(s) with IRA funds
  • A $6,000 per year contribution limit1  2021 and 2022 contribution limit
  • Additional $1,000 “catch-up” contributions allowed for members ages 50 and above

Which approach is best for you? Traditional, Roth, or both? Give us a call and we’ll help you chart the best course for you and your family!

1 Annual contribution amount may change.

The main difference between Traditional and Roth IRAs, both of which are tax-advantaged retirement savings tools, is how these accounts are treated by the tax code.

A Traditional IRA from USSFCU may accept contributions of pre-tax or after-tax dollars and the dividends grow tax-deferred. When you make withdrawals after age 59½, they are treated as current income. In addition, contributions are potentially tax deductible depending on your filing status and income.

A Roth IRA from USSFCU is funded only with after-tax income. Therefore, contributory funds may be withdrawn at any time without tax penalties. When members make qualified withdrawals from their Roth IRAs after age 59½, earnings are not taxed.

Aside from these fundamental differences, Roth IRAs and Traditional IRAs also differ in a few other ways, which are described below.

Traditional IRAs

  • Anyone with earned income may open a Traditional IRA
  • Contributions are deductible from state and federal tax*
  • Earnings are tax deferred until withdrawal
  • Withdrawals may begin at age 59½ and are mandatory at age 72 when members are often in a lower tax bracket
  • Early withdrawals are subject to penalty**

Roth IRAs

  • No age limits for eligibility
  • Eligibility is subject to income limits based on filing status
  • Contributions are NOT tax deductible
  • No penalty for early withdrawal of contributory funds
  • Early withdrawals on earnings subject to penalty**
  • Earnings are 100% tax free on qualified distributions
  • No mandatory distribution age

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as qualifying higher education expenses, first time home purchases, etc.

The Traditional and Roth Contribution Limits are the same for 2021 and 2022:

Total contributions to all of an individual’s Traditional and Roth IRAs may not be more than:

  • $6,000 ($7,000 if you're age 50 or older),
  • Or your taxable compensation for the year, if your compensation was less than this dollar limit.

2021 IRA Contribution Deadline:

  • The 2021 IRA contribution deadline is April 18, 2022

Reminder:

The Setting Every Community Up for Retirement Enhancement (SECURE) Act passed December 20, 2019:

  • Raised the age at which individuals must begin taking RMDs from their retirement accounts from 70 1/2 to 72. 
  • Allows taxpayers with earned income to make Traditional IRA contributions at any age.

Deposits at all federal credit unions and the vast majority of state-chartered credit unions are covered by National Credit Union Share Insurance Fund (NCUSIF) protection. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.

Federally insured credit unions offer a safe place for you to save your money, with deposits insured up to at least $250,000 per individual depositor. The National Credit Union Administration (NCUA) is the independent agency that administers the NCUSIF. Like the FDIC's Deposit Insurance Fund, the NCUSIF is a federal insurance fund backed by the full faith and credit of the United States government. 

For questions about the NCUA’s share insurance coverage, call 1.800.755.1030, option 1, Monday through Friday, 8 a.m. to 5 p.m. Eastern, or send an email to [email protected]. This toolkit contains a variety of helpful resources for credit unions regarding the Share Insurance Fund.

Share Insurance Toolkit from MyCreditUnion.gov

The toolkit has great resources like estimators, publications, videos and more.

Share Insurance Toolkit

Members' Voice Testimonials

I feel my money is safe, the service has always been top-notch and we've found it easy to use even though I probably haven't set foot in one of the branches in five years. Joining the credit union is one of the smartest things I've done.

- Richard · Washington, D.C.

USSFCU has been my first banking option for over 40 years - no fee atms - my grands are now members of the credit union and value their credit union membership also.

- Dennis · Washington, D.C.

USSFCU staff continues to be the best and always has my best interest.

- Mia · Brandywine, MD

The USSFCU has been an important part of my financial situation and has provided outstanding service.

- John · Reston, VA

Every experience with USSFCU has been extremely good right from the start. Our main account with USSFCU is a HELOC with zero over prime rate, which is almost unheard of. The customer service has always been excellent. And when we asked for a temporary payment break to navigate and reorient professionally due to the sudden and temporary financial im...

- Katie · Carlsbad, CA

I've always been treated very professionally and the person caring for my financial needs always listened to me and helped me in a way that was not stressful and beneficial to me.

- Rochelle · Washington, D.C.

USSFCU has never failed us in its' role of being the best bank ever. All the personnel are professional, friendly, efficient and have more than earned our trust, appreciation and admiration. We admire the way they are constantly evaluating, adapting and growing their services for the benefit of its' members. We are very grateful to have had this im...

- Penelope · Copper Hill, VA

Magnificent people, great help during the hard times.

- Ramy · Salt Lake, Utah

I've been banking here for over 20 years it's the best customer service. Credit card interest rates don't gouge at USSFCU. It's a wonderful place to bank.

- Craig · Alexandria, VA

Very personable, solution based and takes an interest in your situation.

- Reno · Temecula, CA

Provides excellent customer service and this is demonstrated by their great attention to detail. USSFCU provides excellent financial products and professional communication.

- Mike · Fayetteville, GA

I joined in 1975 when I began my 41 year career in the U.S. Senate. It was a family and still is - one to be depended on in times of need and for advice.

- Stephanie · Severn, MD

The credit union provides relatively good services and the security updates to the system are noticeable.

- Ophelia · Alexandria, VA

All of my children and grandchildren have USSFCU accounts now. I really admire USSFCU and its staff completely, they have always looked out for my interests.

- Wilma · Sterling, VA

Outstanding online and mobile banking services. Professional, Courteous, knowledgeable responsive staff!

- Michael · Crofton, MD

I am very satisfied to belong to this institution and whenever I need support it is good to know that I count on you.

- Salvador · Waldorf, MD

This credit union is the best, I love the customer service and you can't beat the interest rates. I'm happy to be a member of this great credit union.

- James · Locust Grove, GA

Great staff helping all the time. Just a very well run company always good service.

- Charles · Alexandria

Always good service, especially when I telephone in. I have another credit union where, every time I call in, I have to wait a considerable amount of time before reaching a representative. When I worked on the Hill, it always was a pleasurable experience coming to the credit union office, whether to make a deposit or apply for a loan.

- Charles · Takoma Park, MD

Customer service via the phone is very helpful and easy to accomplish requests.

- Clarke · Alexandria, VA

Care about their clients and concerned about making sure they have the best rates and packages.

- George · Cape Coral, FL

USSFCU has always been accommodating, easy to work with, and staff are always kind. I have every intention of keeping my account with this bank for a long, long time.

- Leslie · Mississippi

The branch manager introduced herself and was extremely helpful. She stated that if there is anything we ever need to please let her know. Very positive experience!

- Larry · Cumberland, MD

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