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Traditional IRA

Great for those expecting a lower tax rate in retirement who want to reduce taxable income today.

Pre-tax contributions may reduce taxable income the year they’re made (consult your tax advisor)
Earnings grow tax-deferred until withdrawal
Required Minimum Distributions begin at age 73 (as of 2024)
Penalty applies for early withdrawals before age 59½

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Tax-deferred Growth

Overview

What is a Traditional IRA?

A Traditional IRA is a smart retirement savings option that allows you to contribute pre-tax income and potentially reduce your taxable income each year. Your savings grow tax-deferred, and when you begin withdrawing in retirement, you’ll pay taxes at your then-current income rate which may be lower than today.

Early withdrawals before age 59½ may incur a 10% IRS penalty, in addition to income tax.

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Start Saving for Your Future with Tax-Smart Contributions

A Traditional IRA helps reduce current tax liability while you prepare for a more financially secure retirement.

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product Benefits

Why Choose a Traditional IRA?

Tax-Deductible Contributions

Depending on your income and tax filing status, contributions may be deducted from your taxable income.

Tax-Deferred Growth

Earnings are not taxed until you withdraw, maximizing compound growth potential.

Extended Contribution Window

You can contribute to your Traditional IRA up to the annual tax filing deadline, giving you extra time to save.

Required Distributions Begin at Age 73

Starting at age 73 (as of 2024), you’ll need to begin withdrawing from your IRA to meet IRS requirements. Plan ahead to avoid surprises.

Withdrawals made before age 59½ may be subject to a 10% early withdrawal penalty.

Want to understand IRA rules in more detail?

Learn More About IRA Guidelines on IRS.gov

Frequently Asked Questions

Have Questions? Let Us Help!

How do I change my name on my account?

Once you have changed your name with Social Security, you will need to complete a membership change card. If you choose to add a joint owner, you can do so at the same time. Once we have the signed application with a copy of your updated identification, we will change your name on our system and place an order for new checks and VISA®/debit cards.
How do I remove a signer from my account?

The joint owner can sign a membership change card that instructs us to remove their name, or we can close your existing account by opening a new account and transferring funds.
What is the routing/ABA number I should use?

Our routing number is 211690911.
How do I order checks?

First-time check orders must be done through the branch. If you are reordering checks with no changes, you can reorder them online through Harland Clarke.
Why haven’t I received a 1099 for interest earned?

The IRS does not require a financial institution to issue a 1099 for accounts that earn less than $10 in a given year. If your account did earn more than $10 and you have not received a 1099, please call us during business hours.

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I recently moved to Vermont and was looking for a new financial institution. Several people recommended 802 Credit Union. Kim helped me set up my accounts, my direct deposit and got me started with online banking. She showed me how to use Bill Pay, which I never used at my previous bank. What a huge convenience! I highly recommend 802 Credit Union and all the staff at the Windsor branch.

Sarah

Windsor, VT

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Traditional IRA

What is a Traditional IRA?

Start Saving for Your Future with Tax-Smart Contributions