What is a traditional IRA?

A traditional IRA is a type of individual retirement account in which individuals can make pre-tax or after-tax contributions and the investments in the account grow tax deferred. Depending on your income, your contribution may be tax deductible. You pay no taxes on any investment earnings until you withdraw or “distribute” the money from your account, presumably in retirement.

With a Traditional IRA, you’ll pay ordinary income tax on your withdrawals, and you must start taking distributions after age 72.

Unlike with a Roth IRA, there are no income limitations to open a Traditional IRA. It may be a good option for those who expect to be in the same or lower tax bracket in the future.

Due to the Setting Every Community Up for Retirement Enhancement Act (SECURE Act), beginning in tax year 2020, there is no maximum age restriction for making a Traditional IRA contribution as long as you, or your spouse if filing jointly, have earned income.

Grow your retirement savings

A coin being deposited into a piggybank.

Save money for retirement

Withdrawals are penalty-free once IRA owner reaches 59 1/2

Cut your tax bill

Possible tax deduction, based on income and retirement plan participation

A hand collecting money.

Customized IRA plan

Talk to a CFS Financial Advisor available through CUSO Financial Services, L.P. ("CFS") about your investment options2

Supports Deposit Products

Choosing deposit products offers a guaranteed return on principal, federally insured up to $250,000

Certificate account options

IRA Certificates offer competitive rates and terms from 3-60 months.

A shield of protection.

Money Market Select account option

Competitive tiered rates and no opening balance minimum

Traditional IRA Calculator

Frequently Asked Questions

We’ll help you plan for retirement
Investment products can also be held in an IRA. We want to help you invest your money wisely. Schedule a complimentary meeting with any of our experienced CUSO Financial Services, L.P. ("CFS")
financial advisors. We’ll talk with you about your goals and interests, find out where you are financially, and get you started on a path that works for you.

Recommended Resources

We've made it easier for you to learn more about retirement savings.

1 Consult tax advisor about IRA tax advantages.

2 Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Patelco Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Financial Advisors are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.