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Traditional IRA Accounts

Save wisely, so you can do exactly as you wish when you retire.

How do you picture your retirement? Maybe you're relaxing at home with your grandkids and family, enjoying your old hobbies, and pursuing new interests. Or maybe you're out traveling the world and seeking non-stop adventures.

Whatever your vision for the future, it's never too early to start planning and saving for your retirement. A Traditional IRA from Power Financial Credit Union is a great option to kick-start your retirement plans or you can open a Traditional IRA in addition to a workplace plan. Make wise moves today so you can enjoy tomorrow!

Benefits of a Power Financial Credit Union Traditional IRA

Get Started With Just $50

Open an account with our low minimum deposit then set up ongoing contributions.

Federally Insured Up To $250,000

Your deposits are federally insured by the NCUA for up to $250,000.

Tax-Deductible Contributions

Traditional IRAs typically offer federal tax deductions on your contributions.

No Monthly or Annual Fees

You won't pay any fees if you follow the withdrawal rules and let your money grow untouched.

How Do Traditional IRAs Work?

A Traditional IRA lets you contribute a certain amount of funds each year and you can potentially claim your contributions as federal tax deductions.

This is a great feature if you think you'll be in a lower tax bracket when you retire than you are now.  Plus, your earnings grow tax free.

  • Open Traditional IRAs with as little as $50

  • Earn competitive Traditional IRA interest rates 

  • Tiered rates mean you earn more as your balance grows

  • Enjoy potential tax advantages, including federal tax deductions on your contributions

  • Contribute up to $7,000 annually in 2024 ($8,000 if over the age of 50)

  • Funds grow tax-free until you're ready to make withdrawals

  • Pay regular income tax on withdrawals after age 59 ½ 

  • Required minimum distributions (RMDs) start at age 73

  • Traditional IRAs are also available as IRA Certificates with various terms

  • Track your savings with easy-to-read monthly statements

  • Federally insured up to $250,000 

  • No annual account fees

Power Financial Credit Union also offers other IRAs. Each type of account offers distinct financial benefits and tax advantages. 

With any IRA, it’s best to consult a financial advisor or tax professional to see what might work best for you.

How to Open a Traditional IRA Account

Step 1

Open Your Account Online

Simply complete our online application form to get started with your Traditional IRA.
Step 2

Open Your IRA

Deposit at least $50 into your Traditional IRA then set up ongoing deposits to grow your balance.

Step 3

Keep Earning

Let your funds grow untouched until you reach age 59 ½ so you don't need to pay any fees.

"Great customer service. Always very pleasant to deal with."

– Bobby P.

FAQs About a Traditional IRA

Accordion Section

Traditional and Roth IRAs have the same annual contribution limits, but they are different when it comes to potential tax advantages and withdrawal rules. Here's what you need to know:
  • A Traditional IRA typically lets you claim your contributions as federal tax deductions while a Roth IRA doesn't offer tax deductions on contributions
  • A Traditional IRA typically has a 10% penalty tax for withdrawals before age 59 1/2 while a Roth IRA may let you withdraw your contributions anytime and let you withdraw your earnings after the account has been open for five years
  • You need to pay regular income tax on your withdrawals from a Traditional IRA but you can make tax-free withdrawals from a Roth IRA once you meet the other withdrawal criteria
  • A Traditional IRA has Required Minimum Distributions (RMDs) starting at age 73 while a Roth IRA doesn't have RMDs
Note that you may not be able to claim all of your contributions as a tax deduction if you or your spouse have a 401(k) or other workplace-sponsored retirement plan. Tax deductions may also be limited if you have a higher income.
The contribution limits vary depending on whether you're under or over age 50.
  • Contribute up to $7,000 in the 2024 tax year if you're under age 50
  • Contribute up to $8,000 a year if you're over age 50
You can deposit funds using several convenient methods:
  • Manual, one-time transfer from another account
  • Automatic, scheduled transfers from another account
  • Direct deposit from another source
  • Payroll deduction from your paycheck
  • In person at a branch
  • Over the phone by calling 800-548-5465
There are several withdrawal rules for Traditional IRAs:
  • You may withdraw funds after age 59 1/2 and after you've held the account open for five years
  • Early withdrawals may be subject to a 10% penalty tax unless you meet exemption criteria.
  • You need to begin Required Minimum Distributions (RMDs) at age 73
  • Earnings grow tax deferred and then you pay regular employment tax on withdrawals – talk to your tax advisor for more details
If you open a Traditional IRA Certificate, you can withdraw funds after age 59 1/2 and when your Certificate term ends. Otherwise, you need to pay the penalty tax.

At the end of your CD term, you may withdraw the funds or reinvest the funds for the same term or a different term. Funds are usually reinvested automatically if you do nothing.
You need to have $50 to open a Traditional IRA Savings Account and a balance of $100 to start earning interest. Your rate will go up when your balance reaches $10,000, $50,000, and $100,000.

With an IRA Certificate, you need a deposit of $500 for most of our certificate terms. Sometimes we also have some special certificates offering higher rates and these may need greater opening deposits.

With credit union IRAs, you can relax knowing you'll get guaranteed returns and your funds are insured up to $250,000. You don't need to worry about what's happening in the stock market with unpredictable stocks and bonds and mutual funds.
Answer: You do need to be a member. Joining is easy! Simply open a Traditional Savings Account with a deposit of $5 and you can then open your IRA account.

Our membership consists of those who live, work, or go to school in Broward, Charlotte, Collier, Lee, Martin, Miami-Dade, Monroe, Palm Beach County, Hillsborough, Manatee, Pinellas, Sarasota, or St. Lucie counties.

We're also proud to offer membership to our Select Employee Groups. Employees and members of these organizations are always welcome to join, no matter where they live: Immediate family of all current members are also welcome to join.

Not Sure if a Traditional IRA is Best for You?

See More Ways to Save for Your Future

Roth IRA

Do your future self a favor and pay taxes on your contributions now so you can enjoy tax-free withdrawals later.

Certificates of Deposit

Our regular Certificates and IRA Certificates offer a wide range of terms so you can get the best rates possible.

Money Market Accounts

Enjoy higher rates than regular savings with the convenience of unlimited withdrawals. Tiered rates go up with your balance.