Individual Retirement Account (IRA)

Flexible options that give you the power to choose how and when you save for retirement.

Compare Traditional and Roth IRAs

Traditional and Roth IRAs both help you save for retirement, but they differ in how contributions and withdrawals are taxed. The right option can depend on your income, tax situation and retirement plans.

Traditional IRA

A Traditional IRA lets you make contributions toward retirement and defer taxes on earnings until you withdraw the money. Your contributions may also be tax deductible, depending on your income, filing status and whether you or your spouse are covered by a retirement plan at work.

Contributions may be tax deductible.
Earnings grow tax deferred.
Withdrawals are generally taxable.
Certain early withdrawals may qualify for an exception to the additional 10% federal tax.

At Neighborhood Credit Union, you can hold your Traditional IRA in an IRA Savings account or an IRA Certificate.

Roth IRA

A Roth IRA is funded with after-tax contributions, so contributions are not tax deductible. Earnings can grow tax free, and qualified withdrawals are tax free when IRS requirements are met.

Contributions are made with after-tax dollars.
Qualified withdrawals are tax free.
Eligibility to contribute is subject to income limits.
Your original Roth IRA contributions can generally be withdrawn without tax or penalty.

At Neighborhood Credit Union, you can hold your Roth IRA in an IRA Savings account or an IRA Certificate.

Ready to open an IRA? Traditional and Roth IRAs must be opened at a Neighborhood Credit Union branch.
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IRA Certificates

Choose a fixed term and earn a fixed rate while you save for retirement.

Earn up to 4.10% APY*

Minimum Opening Deposit: $2,500 Additional deposits of $25 or more are allowed, subject to annual IRA contribution limits.

Term	Interest Rate	APY*
12 months	4.02%	4.10%
18 months	4.02%	4.10%
30 months	4.02%	4.10%
36 months	4.07%	4.15%
48 months	4.07%	4.15%
60 months	4.16%	4.25%

IRA Savings

Keep your retirement savings accessible while earning dividends on your balance.

0.10% APY*

Minimum Opening Deposit $100

Minimum Balance to Earn Dividends $100

Account Type IRA Savings

Account Details

Traditional or Roth IRA

Federally Insured by NCUA

Certificates of Deposit (CDs)

Share Savings Account

What's the difference?

Click the "Compare IRA Options" button to see a comparison chart highlighting similarities and differences between the two account types.

Compare IRA options

Features	Traditional IRA	Roth IRA
Who can contribute?	You can contribute if you (or your spouse if filing jointly) have taxable compensation but not after you are age 70½ or older.	You can contribute if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see below).
Are my contributions deductible?	You can deduct your contributions if you qualify.	Your contributions are not deductible.
Do I have to take required minimum distributions?	You must start taking distributions by April 1 following the year in which you turn age 70½ and by December 31 of later years.	Not required if you are the original owner.
Are my withdrawals and distributions taxable?	Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.	None if it’s a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.

Features	Applies to Traditional IRA & Roth IRA
How much can I contribute?	The most you can contribute to all of your traditional and Roth IRAs is the smaller of: For 2018, $5,500, or $6,500 if you’re age 50 or older by the end of the year; or your taxable compensation for the year. For 2019, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or your taxable compensation for the year.
What is the deadline to make contributions?	Your tax return filing deadline (not including extensions). For example, you can make 2018 IRA contributions until April 15, 2019.
When can I withdraw money?	You can withdraw money anytime.

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Cash Back Checking

Earn cash back rewards with no minimum balance.

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Frequently Asked Questions

How can I open an IRA?

To open an IRA savings account or certificate of deposit, please visit one of our branches.

Are my IRA funds federally insured?

Yes, both the Traditional and Roth IRA account funds opening through Neighborhood Credit Union are federally insured by the National Credit Union Administration (NCUA) up to $250,000.

Where can I learn more about IRAs?

Visit IRS.gov to learn more about IRA contribution and deduction limits, distributions, and beneficiaries.

^*APY = Annual Percentage Yield. Certificate of deposit rates effective September 23, 2026. Savings account rates effective October 1, 2025. Please see the certificate Truth-In-Savings Disclosures for more details.

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