Traditional IRA

A Traditional Investment Retirement Account (IRA) is an excellent means of saving for retirement with tax benefits that help you accumulate your savings faster. Your contributions are made up to a specified limit per year and typically funds must remain on deposit until age 59+.

Benefits:

  • Flexible fixed-rate term options from 3 months to 60 months

  • Earns higher monthly yields, which are compounded monthly

  • Safe and secure investment

  • Free online banking, mobile banking, and telephone banking

  • Free eStatements

Good to know:

  • A minimum opening deposit of $500 is required

  • Certain penalties apply for early withdrawal of funds. See fee schedule and disclosure for complete details


Roth IRA

A Roth Investment Retirement Account (IRA) is a tax-advantaged savings vehicle for retirement. The Roth IRA is funded with post-tax contributions, and offers you more access and more flexibility to your money. As long as you have met the 5 year holding period, which begins with the tax year for which your first contribution is made, your Roth IRA earnings can be withdrawn tax-free and penalty free for specific distribution reasons.

Benefits:

  • Dividends are paid monthly

  • Safe and Secure Investment

  • Funds may be invested in an IRA Accumulator or IRA Certificate of Deposit

  • Ability to make contributions conveniently with payroll deductions

  • Distribution of funds is not mandatory

Good to know:

  • Minimum opening deposit of $500 for an IRA Certificate of Deposit

  • Applications typically take 24 - 48 hours to process

  • Funds you contribute and earn can be withdrawn tax-free and penalty free, once the 5 year holding period is reached, and if one of the following qualified distributions apply:

    • You are at least 59.5 years old

    • You become disabled

    • Funds are used for qualified medical expenses

    • Funds are used towards a first-time home purchase, up to $10,000

    • Your death results in a distribution made to the account beneficiary (or your estate)

Current Member?

Contact us at 925-939-5626 or email info@kdfcu.org to open an IRA.