A woman enjoys a secure future after opening an IRA.

Individual Retirement Accounts (IRAs)

Build savings for your future and enjoy tax advantages too!





This IRA account allows tax-deductible contributions and then you pay taxes on future withdrawals. A good option if you're in a high tax bracket now and are likely to be in a lower bracket by the time you retire.

  • Contribute from earned income up to $6500 a year or $7500 if you're over 50
  • Contributions are tax-deductible and your earnings grow tax-deferred, but contributions may not be tax-deductible if you're also contributing to an employer-sponsored retirement plan.
  • Pay regular income tax on withdrawals after age 59 ½ 
  • Pay a 10% early penalty tax on withdrawals before age 59 ½ unless funds are for higher education, a first home, and other eligible exceptions
  • Required minimum distributions (RMDs) start at age 73

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A Roth IRA account offers more flexible withdrawals than a Traditional IRA. Contributions aren't tax deductible, but you can enjoy tax-free withdrawals in retirement or when you meet the criteria.  

  • Contribute from post-tax, earned income up to $6,500 a year if you're under age 50 or $7,500 over 50 in the 2023 tax year
  • Contributions are not tax-deductible but earnings grow tax-free
  • Withdraw contributed funds tax-free at any time and withdraw earnings tax-free if you’re at least 59 ½ years old and your account has been open for five years
  • Pay taxes if you withdraw earnings before five years or before you turn 59 ½ unless funds are used for eligible exceptions such as higher education or a first home
  • No required minimum distributions (RMDs)

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Also known as a Coverdell Education Savings Account (ESA), this IRA account can help you prepare for your child's future. Contributions aren't tax deductible, but contributions and earnings can be withdrawn tax-free when used to pay for qualified education expenses.

  • Open before your child or beneficiary turns 18
  • Contribute up to $2,000 a year from post-tax, earned income.   
  • Withdrawals for qualified education expenses can be made tax-free until the beneficiary turns 30
  • Pay penalties and taxes on withdrawals after age 30 unless you meet exception criteria   
  • Possible to open more than one ESA IRA for the same child

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An older couple enjoy retirement thanks to an IRA.


Wasatch Peaks Credit Union offers a range of Individual retirement accounts to our members in Utah. Here's how an IRA account can help you prepare for the future:

  • No minimum deposit 
  • Start earning interest on any amount
  • Choose a Traditional IRA if you want tax-deductible contributions
  • Choose a Roth IRA if you want tax-free withdrawals
  • Choose an ESA IRA to save for K-12, college, and higher education expenses
  • All our IRAs are available as IRA Certificates that let you earn higher rates over a range of terms
  • Deposits are insured by NCUA up to $250,000


Tax Year


Max Contribution


Catch-Up Contribution


Talk to an IRA Specialist



  • When should I open an IRA account?

    An IRA is a tax-advantaged investment account that you can generally open at any time, no matter your age or whether you have an employer-sponsored plan. However, there are a few guidelines to be aware of:

    • You can contribute to an IRA at any age as long as you are employed with earned income.
    • You can contribute up to $6,500 a year to a Roth or Traditional IRA if you're under 50 in 2023.
    • You can contribute up to $7,500 a year to a Roth or Traditional IRA if you're over 50 in 2023.
    • You can contribute up to $2,000 a year to an ESA IRA until your child reaches age 18 and you need to open the account before they turn 18.

    Depending on your modified adjusted gross income and filing status, you may be able to open a Traditional or Roth IRA even if you have a 401(k) or another type of employer-sponsored retirement plan or are covered by a retirement plan at work. 

    However, contributions to a Traditional IRA may not be tax deductible if also contributing to an employer-sponsored retirement plan.

  • How is a Traditional IRA different from a Roth IRA?

    Traditional and Roth IRAs feature both similarities and differences: 

    • Both accounts let you contribute up to $6,500  a year (or $7,500  if you're over 50), and contributions must be from earned income, so you need to be employed.
    • You can deduct contributions to a Traditional IRA, whereas contributions to a Roth IRA are not deductible. 
    • You pay ordinary income tax on withdrawals from a Traditional IRA, whereas qualified withdrawals from a Roth IRA are generally tax-free.
    • You need to wait until you're 59½ to withdraw funds from a Traditional IRA (unless you meet exception criteria), whereas a Roth IRA lets you withdraw contributed funds at any time, and earnings without penalty if you’re 59 ½ and it’s been five years since you opened the account. 
    • A Traditional IRA has required minimum distributions (RMDs) starting at age 73, whereas a Roth IRA has no RMDs.

    Note that credit union IRAs earn guaranteed dividends and interest. They are not invested in the stock market, exchange-traded funds, or mutual funds. This means your funds and earnings are secure.

  • When can I withdraw funds from an IRA?

    Withdrawal rules vary based on your chosen type of IRA:

    • You likely need to pay a 10% penalty tax on withdrawals from a Traditional IRA if you're under 59 ½. 
    • You may withdraw your Roth IRA contributions anytime without paying taxes or penalties, unless it's an IRA CD, and then you need to wait until the end of the CD term.
    • You may withdraw your Roth IRA earnings without penalty when you turn 59 ½ and five years after opening the Roth – early withdrawals of your earnings will be subject to income tax.
    • You may withdraw funds from an ESA IRA when your child is any age, provided the funds are being used for qualified education expenses.
    • You should complete withdrawals from an ESA IRA before your child turns age 30, or you will likely need to pay penalty taxes. Exceptions include children with special needs.


  • What are the exception criteria for early withdrawal from a Traditional IRA?

    In many cases, you need to pay a 10% early penalty tax if you withdraw funds from a Traditional IRA before age 59 ½. Here are some exceptions:

    • A down payment toward your first home up to $10,000
    • Qualified higher education expenses
    • Unreimbursed, out-of-pocket medical expenses 
    • Health insurance premiums if you're unemployed
    • A permanent disability 
    • Unpaid federal taxes
    • Called to active duty
    • Inherit the IRA


  • How is an ESA IRA different from a 529 plan?

    An Educational IRA is more formally known as a Coverdell Education Savings Account (ESA). It's an account designed to help you save for your child's education, whether that's for your college savings fund or another form of higher education. You may also use the funds for K-12 expenses, books, supplies, computers, and more. 

    A Coverdell ESA is similar to a 529 savings plan but there are a few differences. An ESA IRA has contribution limits based on the parents' income and the funds must be withdrawn once the child turns 30. A 529 plan has no income restrictions and the funds may be transferred to another child if the original beneficiary doesn't use all the funds for qualified expenses. 

    It's a good idea to open both types of accounts if you're eligible for them. That way, you can enjoy as many advantages as possible and offer your child the best education available.

  • Do I need to join Wasatch Peaks Credit Union to open this account?

    Yes, you need to join the credit union, and becoming a member is easy! You simply need to meet these criteria:

    • You are an immediate family member of an existing member-owner, such as a parent, child, brother, sister, spouse, or surviving spouse.
    • You live, work, worship, or attend school in Weber, Morgan, or Davis Counties in Utah.



When you open an account with Wasatch Peaks, you become a member of our cooperative and get a say in how we run things.   

We're here to serve the people of Weber, Morgan, and Davis Counties, Utah  – not spin a profit for outside shareholders. 

We give our revenue back to you through low fees, competitive rates on loans, and generous yields on retirement savings options like our IRA accounts. 

Above all, we care about the members of our community and are proud to support our youth by partnering with local schools, organizations, and events.


A family enjoys a lakeside picnic after opening a credit union account.




Call: 801-627-8700

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Choose from a Traditional or Roth IRA and start making your annual contributions so you can enjoy unique rewards and tax advantages.

Learn More

Health Savings Account

Save now so you've got medical expenses covered. Contributions are tax-deductible and distributions are tax-free when used for qualified expenses.

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Money Market Accounts

Earn higher rates than regular savings with more accessibility than a certificate. Best of all, your rates increase as your balance reaches milestone amounts.

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For more information about IRAs, please give us a call at 801-627-8700.