Individual Retirement Accounts

Two great ways to build a better tomorrow

When you quit working, the toughest decision might be what to do with all that extra free time. But now, as you start saving, you have an important choice to make. At CommonWealth One, we offer both Traditional and Roth IRAs. Dig into the details to see which one works best for you.

Traditional IRA

• Save money through either Savings Accounts or Share Certificates
• No minimum deposit for Savings Accounts
• Share Certificates with minimum deposit requirements starting as low as $50
• Terms range from 6 months to 5 years
• Contribute up to $6,000 per year ($7,000 if over age 50)
• Potential tax deductions for each year you contribute to your Traditional IRA
• Dividends grow tax-free; withdrawals are taxed as regular income
• You must make withdrawals by age 70 1/2
• Consult a financial advisor for more information

Traditional IRA

Exploring Your IRA Options. Traditional IRA versus Roth IRA

Roth IRA

• Save money through either Savings Accounts or Share Certificates
• No minimum deposit for Savings Accounts
• Share Certificates with minimum deposit requirements starting as low as $50
• Terms range from 6 months to 5 years
• Contribute up to $6,000 per year ($7,000 if over age 50)
• No annual tax deductions, but dividends grow tax-free
• All withdrawals are tax-free
• No mandatory withdrawal age
• In some cases, Roth IRA funds can be used for higher education and home-buying costs
• Consult a financial advisor for more information

Roth IRA

Save for higher education expenses

A Coverdell Education Savings Account (ESA) puts your savings on the right track while planning for expenses such as tuition, fees, books, supplies, equipment, and, in some cases, room and board. With an ESA, you make nondeductible contributions that provide the potential for tax-free withdrawals - including earnings down the road.

Learn more about Coverdell Education Savings Accounts (ESA)

Additional Resources

Balancing Rising Health Care Costs - Health Savings Accounts

Rolling Your Way to a Better Retirement - Transfers, Rollovers and Conversions

Inherited IRAs - Understanding Your Beneficiary Distribution Options

IRA and Retirement Plan Distributions - Is It Time To Cash In On Your Retirement Savings?

CommonWealth One Federal Credit Union is a full-service credit union with branches in Virginia and Washington, D.C.

Products insured separately up to $250,000

IRA Certificates - Annual Percentage Yield (APY). Rates are subject to change without notice. Dividends calculated daily, paid quarterly. Penalties may be imposed for early withdrawal. Fees may reduce earnings. The IRS regulates an individual’s maximum IRA annual contributions; please consult with a tax advisor.