A Traditional IRA is an account that allows qualified tax-deductible contributions and also allows contributions and earnings to grow tax deferred. This means you don't pay taxes on your contributions or earnings until you withdraw them.
The Roth IRA
A Roth IRA is a nondeductible account that features tax free withdrawals of earnings after a five-year holding period and when certain requirements are met. Your contributions and earnings accumulate tax free. Since the money you contribute has already been taxed, you may make tax-free and IRS penalty-free withdrawals at any time—as long as the amount withdrawn is less than or equal to the contributions already made. You may invest in a Roth IRA in addition to any contributions you make to your company-sponsored retirement plan.
For more information about our Individual Retirement Accounts, please call one of our friendly member services representatives, or visit a local California Community Credit Union branch office near you.