Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

A Secure Retirement Starts Here!

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.

Traditional & Roth IRAs 

USSFCU offers both Traditional and Roth IRAs, each of which has its own distinct tax advantages. Either may be opened as a savings account or a term certificate. Despite some different characteristics detailed 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 $6,500 per year 2024 contribution limit* 
  • A $7,000 per year 2025 contribution limit*
  • Additional $1,000 “catch-up” contributions allowed for members ages 50 and above

*Annual contribution amount may change.

Resources for Your Retirement

Retirement Central is designed to help you better prepare for tomorrow by providing education, planning tools, online account management, and articles all in one place.

 

Your one-stop resource for retirement planning.

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RATES

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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 Therefore, contributory funds may be withdrawn at any time without tax penalties.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 73 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

APY = Annual Percentage Yield. The APY assumes dividends will remain on deposit until maturity. The dividend period on your account begins from the date that your account is opened and ends on the maturity date unless renewed. The minimum balance required to open a share certificate is $1,000. You will earn dividends for every day during the period that your account equals or exceeds the minimum daily balance requirement. Early withdrawal penalties may apply. Changes without penalty are allowed ten days from the maturity date. Fees may reduce earnings. See Fee Schedule at ussfcu.org/fees for more details.

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

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

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The Traditional and Roth Contribution Limit for 2024:

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

  • $7,000 ($8,000 if you're age 50 or older),
  • Or your taxable compensation for the year, if your compensation is less than this dollar limit.
  • You can make 2024 contributions until April 15, 2025

The Traditional and Roth Contribution Limit for 2025:

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

  • $7,000 ($8,000 if you're age 50 or older),
  • Or your taxable compensation for the year, if your compensation is less than this dollar limit.
  • You may begin making 2025 contributions January 1, 2025

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

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

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

Greta was absolutely amazing - as always. She makes me and my parents feel valued and supported. We are forever grateful. [The Credit Union] has been hugely supportive over many years. And we feel known and cared for.

- Eliza · Washington, DC

Long as I have been with the credit union, I haven't had any problems. I also like the protection on my account.

- Charles · Upper Marlboro, MD

My overall experience at the credit union was exceptional. The staff was hospitable offering water, my service was timely and professional and the office was well lit and clean.

- Denise · Washington, DC

As a member for more than 40 years, i have always had great service from the USSFCU and know that they stand behind their great reputation.

- David · Silver Spring, MD

A top rate Credit Union, [I'm] privileged to be part of! Thank you for all you do for our family! USSFCU Credit Union was able to resolve our financial situation - vehicle, personal loans, customer service/recommendations, within 6 months. We belonged to another credit union for over 20 years, with results not even close to comparison. We switched ...

- Manuel · Bowie, MD

Your people and products are amazing. The recent [online banking] overhaul is phenomenal. [I've] been electronic banking since Tele action phone banking - paying bills with my push button landline decades ago. USSFCU is light years ahead of everyone else in terms of ease of use and client experience!

- Misty · Brookings, OR

I have been a member for more than 30 years. I no longer reside in the DC area but continue to bank with USSFCU because of the ease and the customer service.

- Tamra · Denver, CO

I have been a member for over 50 years, and I have always gotten good service with loans, when I had to have service at a branch, and when I needed to have money sent to me from my savings account. The personnel have always been friendly and treated me with respect.

- John · Fort Washington, MD

I especially appreciate being able to quickly speak with someone (not a robot) and that person has always been knowledgeable and helpful.

- Bernard · Richmond, VA

Excellent customer service streamlined and transparent process. The representatives are efficient, knowledgeable, and understanding of the type of loans offered by Credit Union.

- Erwin · Ellicott City, MD

The USSFCU behaves as a credit union ought to behave. The staff works with and for the members, not for a corporate board. Interest rates for a car loan, a home improvement loan, and a mortgage are low and terms are transparent.

- Ruth · Takoma Park, MD

Staff are courteous and friendly to work with. Very knowledgeable about services and products offered or available. Excellent follow-up with customers.

- Jacquelyn · Sanford, FL

I have appreciated USSFCU services for many years since I left my work on Capitol Hill. I have appreciated the occasional webinars on purchasing a home or retirement planning.

- Jamie · Washington, DC

I have been a member since 2006, and have always appreciated the customer service response to any concern or query. In addition, as I have traveled extensively, USSFCU has provided support and access.

- Kathleen · Ukiah, CA

I've had a credit union account for decades, even though I no longer work on Capitol Hill. I now have two accounts. I've been able to do all of our banking remotely, by app or by phone.

- Richard · Washington, DC

I have been a USSFCU member for almost 20 years. There is nowhere else I want my money to be. I always receive excellent service.

- Nicole · Alexandria, VA

I deeply appreciate the stellar service, the proficiency, the professionalism, and the kindness. I am truly honored and grateful to bank with a financial institution that treats customers like family.

- Angela · Alexandria, VA

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