IRAs (Individual Retirement Accounts)

Saving for retirement is an important decision for financial security. Talk to your tax professional about the advantages and conditions of an IRA. Then, let your local financial institution—Cascade Community Credit Union—meet your IRA needs.

Traditional IRA

  • Eligible for Traditional IRA deductions
  • Not eligible to contribute to a Roth IRA
  • Anticipate a higher tax rate while saving
  • Anticipate a lower tax rate during retirement
  • Required minimum distributions (RMDs) beginning the year you turn 70.5
  • Tax implications to beneficiaries

Roth IRA

  • Not eligible for Traditional IRA deductions
  • Anticipate a lower tax rate while saving
  • Do not anticipate a lower tax rate during retirement
  • No required minimum distribution (RMD)
  • No age limit restrictions on contributions

Coverdell Educational Savings Account (ESA)

  • Used for a child’s education expenses
  • Nondeductible contributions that provide for future tax-free withdrawals – including earnings
  • Contributions must be from one or more individuals whose income is each within certain limits

Simplified Employee Pension (SEP) IRA

  • May be suitable for a small business owner (including a sole proprietor) for tax-deferred retirement savings
  • Does not require ongoing contributions and can be discontinued at any time
  • Can be contributed to by the business owner for the benefit of one or more employees
  • May represent a lower administrative burden and legal liability for the business owner


Happy retirement