Retirement Accounts in Vermont
Individual Retirement Accounts (IRAs) offer a secure way to grow your savings with tax advantages. Whether you’re just starting to save, looking to lower your tax burden, or nearing retirement, we have a solution for every stage of your financial journey.
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Traditional IRA
Best for: Individuals seeking a tax deduction now and lower taxes in retirement.
Contributions are often tax-deductible, and withdrawals in retirement may be taxed at a lower rate.
Roth IRA
Best for: Savers who expect higher income later and want tax-free growth.
Pay taxes now and enjoy tax-free withdrawals later.
Traditional and Roth IRA Contribution Limits (2024)
- $7,000 per year if under age 50
- $8,000 per year if age 50 or older
Contribution limits are per individual, across all IRA accounts. There is no limit on the number of accounts, only on total yearly contributions.
Taxes & Penalties
- Early withdrawals (before age 59½) may incur a 10% penalty (exceptions apply)
- Federal tax: 10%; Vermont state tax: 3%
- 802CU can withhold and remit taxes on your behalf, or you may opt out and pay them at filing
- Traditional IRA: Withdrawals are taxed as income
- Roth IRA: Qualifying withdrawals are tax-free after 5 years
- SEP IRA: Contributions are pre-tax and taxed upon withdrawal
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SEP (Simplified Employee Pension) IRA
Best for: Employers and self-employed individuals offering retirement benefits.
An easy and tax-advantaged way to support employee retirement.
Note: SEP IRAs require individualized guidance based on business structure and contribution goals. Please contact your branch to schedule a time with a team member to open this account.
IRA Shares Account
Best for: Flexible contributions and growing savings over time
No minimum balance with the ability to contribute anytime.
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IRA Certificate of Deposit (CD)
Best for: Members rolling over an IRA or locking in a higher rate.
Earn more with fixed terms and secure savings.
Rates That Reward Smart Savers
At 802CU, your savings work for you. Whether you’re building an emergency fund or investing in your future, our savings options come with competitive rates designed to help you reach your goals.
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Frequently Asked Questions
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As a member-owner, you’re doing more than banking. You’re building a better financial future with a credit union that puts you first.
Testimonials
Hear From Our Members!
Real stories from real people who’ve found their financial home.
The team at 802CU walked me through my IRA options and helped me make the best decision for my retirement goals.
Robert
Brattleboro, VT
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