You’ve worked hard your whole life — now let Alabama Teachers go to work for your future retirement. With an IRA, you can set funds aside every month, while earning a competitive dividend above standard savings. Whether you choose a traditional or Roth option, an IRA can be a tax-advantaged1, low-cost account insured by the NCUA.

Summary
  • Save for retirement with tax advantages1
  • Earn competitive dividends 
  • Pays monthly dividends
  • Available in Traditional and Roth
  • Annual contribution limits apply1
  • $1,000 annual “catch up” contributions allowed for ages 50 and better
  • No annual fees or set up fees
  • $1,000 minimum for IRA certificates (CDs)
  • Federally insured
  • $5 minimum deposit to open
Traditional vs. Roth

There are advantages to both Traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A Traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement. 

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½ with no IRA penalty (penalty may apply if IRA Term Share Certificate withdrawal is made prior to maturity)
  • Early withdrawals subject to penalty1
  • Mandatory withdrawals at age 70 ½

Roth IRA

  • Income limits to be eligible to open Roth IRA1
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal if qualifications are met1
  • Early withdrawals on interest subject to penalty1
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

Secure your financial future

1Consult a tax advisor.