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Traditional IRAs

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Get a head start on planning ahead

For most of us, a financially secure retirement is a major goal. Depending on your unique situation, a Traditional IRA from San Mateo Credit Union could be an excellent tool to help you towards that goal.*

SMCU Traditional IRAs carry no monthly or initiation fees, and you can choose to open a liquid account or a Certificate of Deposit -- or both.

Can I open a Traditional IRA?

To open a Traditional IRA, you must be earning income and be under age 70.5. If you meet those basic qualifications, you can open an account.

What are the basic features of a Traditional IRA?

  • Contributions are pre-tax
  • If you meet income requirements, you can deduct contributions from your current taxes
  • When you eventually withdraw funds, your distributions will be taxed at ordinary income tax rates

How much can I contribute?

For 2018, the maximum you can contribute is $5,500. If you're over age 50, you can contribute an extra $1,000.
 

Traditional vs. Roth IRA

You may prefer a Traditional IRA if you: You may prefer a Roth IRA if you:
Qualify to make tax-deductible contributions Value a source of tax-free retirement income
Earn too much to contribute to a Roth IRA Don't want to take required distributions at age 70.5
Want to build savings and convert to a Roth later      Expect to be in a higher tax bracket at retirement


As with any investment tool, the decision to use a Traditional IRA should be discussed with a financial professional first. So please give us a call at (650) 363-1725 or stop by a branch to talk through your options.

* SMCU does not provide tax advice. Please consult with your tax or legal advisor to determine how this information may impact your own situation. The information on this site should not be relied upon as investment advice or solicitation. Statements of fact are considered reliable but no representation or warranty is made as to their completeness or accuracy.
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