Retirement Accounts

Plan ahead by saving now for retirement

Worry less about having enough money to retire with an Individual Retirement Account (IRA). Monterra Credit Union can help. 

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.Want tax-free distributions¹ when you retire.
Want to make retirement saving even easier due to no income limits. Want the flexibility to access principal without penalties or taxes.
Enjoy access to various investment options, such as stocks, bonds, money markets, certificates of deposit, mutual funds, or ETFs. Expect to be in a higher tax bracket at retirement.

Traditional IRA

You can open a Traditional IRA no matter your age, as long as you are earning income during the tax year for which you are contributing. 

  • Contributions are pre-tax.
  • For 2024, the maximum you can contribute is $7,000. If you are 50 years of age or older, you can contribute an extra $1,000.
  • If you meet income requirements, you can deduct contributions from your current taxes.¹
  • Your distributions will be taxed at ordinary income tax rates when you withdraw.

Roth IRA

With a Roth IRA, you contribute after-tax dollars, which is the opposite of a 401(k) or Traditional IRA using pre-tax money.

  • Investments grow tax-free.*
  • Contributions are not tax-deductible.
  • You can withdraw your contributions any time without paying taxes.
  • You can withdraw your earnings on contributions without taxes¹ after your account has been open for five years and you reach age 59 ½.¹
  • Distributions are not required to be taken at age 73. (i.e. no Required Minimum Distribution)

Add *APY = Annual Percentage Yield. Rates are effective 6/ 24/ 2024 and are subject to change at any time. Conditions and restrictions apply.

1Consult your tax advisor regarding tax implications.

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