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Individual Retirement Accounts (IRAs)

Save today for a brighter tomorrow.

No matter where you’re at, an Individual Retirement Account (IRA) can help you save for retirement. Choose between a Traditional or Roth IRA to get the tax benefits that best fit your situation.

Get a better handle on how to save for retirement.

When to Choose Traditional IRA vs. Roth IRA

A Traditional IRA might be the better choice if:

  • You aren’t eligible for a Roth IRA.
  • You expect to be in a lower tax bracket in retirement.
  • You’re supplementing a retirement plan from work.
  • You need to roll over assets from an employer-sponsored retirement plan.

A Roth IRA might be the better choice if:

  • You expect to be in a higher tax bracket in retirement.
  • You plan to make any withdrawals before age 59 ½.
  • You have a modified adjusted gross income that disqualifies you from receiving a contribution tax deduction.
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Traditional IRA

Withdraw Money Tax-Free in Retirement

APY

1.00%

Minimum Deposit

$500

Age Limit

Beneficiary must be under age 70 1/2

Required Minimum Distribution

Required once the beneficiary is 72

Contribution Limit (For 2021)

$6,000
$7,000 (if age 50 and older)

Roth IRA

WITHDRAW MONEY TAX-FREE IN RETIREMENT.

APY

1.00%

Minimum Deposit

$500

Age Limit

Beneficiaries of all ages can contribute

Required Minimum Distribution

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Contribution Limit (For 2021)

$6,000
$7,000 (if age 50 and older)

OPEN AN IRA

We’re happy to help you learn more about IRA contribution limits and open an IRA. Contact Honda Federal Credit Union at 1-800-634-6632.

ira frequently asked questions

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Retirement Basics

Set goals for your retirement fund and learn how to achieve them with these interactive lessons

* The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

† APY = Annual Percentage Yield. Rate subject to change at any time without notice. Fees and penalties can reduce earnings on the account.