A couple enjoy time together, secure in the knowledge that their retirement savings plans are on track.

TRADITIONAL IRA

Save for the future with tax-deductible contributions.

 

OPEN YOUR TRADITIONAL IRA

ENJOY TAX BENEFITS NOW AND ACCESS YOUR FUNDS LATER

A Traditional Individual Retirement Account (IRA) lets you contribute up to $7,000 a year from your earned income and claim your contributions as a tax deduction. This account encourages long-term savings with penalties on withdrawals before age 59½. You pay regular income tax on withdrawals after age 59½.

A woman smiles as she sits in her kitchen, knowing she has made a wise choice by investing in a Traditional IRA.

 

BENEFITS OF A TRADITIONAL IRA

A Traditional IRA is a great choice if you want to defer paying taxes on your contributions until you make future withdrawals. This makes sense if you're in a high tax bracket now and are likely to be in a lower bracket by the time you retire.

  • No minimum deposit to open.
    Start earning dividends on any amount.
  • Contribute up to $7,000 a year ($8,000 if over 50).
  • Contributions are tax-deductible, and your earnings grow tax-deferred.
  • You pay income tax on withdrawals after age 59½.
  • You pay a 10% early penalty tax on withdrawals before age 59½.

 

OPEN YOUR TRADITIONAL IRA

TRADITIONAL IRA rates

Account
Minimum
APY
Dividend
Paid
Traditional/ Roth/ Educational IRA
$0
0.05%
0.05%
Monthly
Savings Rates Disclosures

WHAT YOU NEED TO KNOW ABOUT TRADITIONAL IRAs

Northern Utah is a great place to retire. Secure your future in our vibrant community by planning ahead for retirement now. Traditional IRAs provide a simple and effective way to plan for retirement no matter what your personal financial situation is.

Here’s how it works:

  • Contributions need to come from earned income, so you must be employed.
  • Before age 59½, you may be able to make penalty-free withdrawals for higher education, a first home, and other eligible exceptions.
  • Required minimum distributions (RMDs) start at age 73.
  • Contributions may not be tax-deductible if you are also contributing to an employer-sponsored retirement plan.
  • Your deposits are insured by NCUA up to $250,000 per account.

Ready to get started on saving for a more secure future? Click below to begin.

OPEN YOUR TRADITIONAL IRA

An older couple spend time together in a park, confident that their retirement savings are secure in a Traditional IRA.

 

WHICH IS BETTER: A TRADITIONAL OR ROTH IRA?

Ready to get serious about saving for retirement? A Traditional IRA is a good choice if you think your income bracket will be lower in the future, so you want to enjoy tax deductions on your contributions now and pay taxes on your withdrawals later.

A Roth IRA is a better choice if you want to pay taxes on your contributions now and enjoy tax-free withdrawals later.

With a Traditional IRA, you are required to wait until you're 59½ to make penalty-free withdrawals unless you use the funds for certain eligible reasons.

A Roth IRA lets you withdraw your contributed funds at any time. You can withdraw your earnings without penalty if you’re 59½, and it’s been at least five years since you opened the account.

OPEN YOUR TRADITIONAL IRA

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HOW TO OPEN A TRADITIONAL IRA 

Step

1

Join Wasatch Peaks Credit Union

Check you meet our membership criteria and open a savings account with a deposit of just $5.

Step

2

Open Your Traditional IRA

Select your preferred type of IRA and make your opening deposit to start earning interest.

 

GET STARTED

Step

3

Keep Contributing and Earning!

Contribute up to $7,000 a year or $8,000 if you're over 50 – and watch your balance grow!
"This credit union is wonderful! They took very good care of me. They responded quickly to everything!"
Dallas B., Ogden, Utah
★★★★★

WHY CHOOSE WASATCH PEAKS CREDIT UNION?

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 savings tools like our Traditional IRAs.

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 couple celebrates after climbing a mountain in Utah.

 

TRADITIONAL IRA FAQs

  • Is a Traditional IRA the same as a 401k?

    No. A Traditional IRA is an individual account that you open on your own, while a 401(k) is usually offered by an employer. The contribution limits for a 401(k) plan are higher, allowing you to save more each year, and many employers offer matching contributions. However, both accounts offer tax-deferred growth, meaning you pay taxes on withdrawals in retirement rather than on your original contributions.

    Contributing to a 401(k) at work may affect whether any contributions to your Traditional IRA are tax deductible. Check with your tax advisor to find out more.

  • How does a Traditional IRA work?

    A Traditional IRA, or Individual Retirement Account, allows you to set aside money for retirement. Your Traditional IRA contributions are not taxed, and your balance can grow tax-free. You are able to make withdrawals once you reach age 59½ (or earlier for some eligible expenses). Withdrawals are taxed as regular income. If you are in a lower tax bracket in retirement than when you made the contributions, you will save money on taxes on your contributions and earnings.

  • Can I open a Traditional IRA on my own?

    Yes, you can open a traditional IRA of your own at Wasatch Peaks Credit Union or another financial institution. Opening an IRA is straightforward. You don’t need an employer or other sponsor. You do need to meet some eligibility requirements, such as having earned income.

  • How much does it cost to open a Traditional IRA?

    There is no cost to opening a Wasatch Peaks Credit Union Traditional IRA, and you will earn interest immediately on any amount you invest. Federal laws limit annual contributions to $7,000 per year or $8,000 if you are over age 50.

  • Is it a good idea to open a Traditional IRA?

    It depends on your personal financial situation. A traditional IRA allows you to make tax-free contributions today and lets your investment grow tax-deferred until withdrawal. After age 59½, you’re able to make withdrawals from your account and to pay tax on these as regular income.

    A traditional IRA makes the most sense if you expect to be paying less tax in retirement than you are now. In this case, your withdrawals will be taxed at a lower rate than when you originally earned the contributions, delivering a valuable tax break.

  • What is the deadline to open a Traditional IRA?

    The deadline to open and contribute to a traditional IRA for a given tax year is usually the same as the federal tax filing deadline — April 15 of the following year. This means you have until April 15, 2025, to open and fund a traditional IRA for the 2024 tax year. This extended period can be very useful because it allows you to take account of your full financial situation for the year, including taxes, before making your contribution.

  • What are the Traditional IRA annual contribution limits for 2025?

    Under IRS guidelines, you are able to contribute up to $7,000 in tax year 2025 or $8,000 if you are over age 50.

  • What is a SIMPLE IRA vs. a Traditional IRA?

    A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a retirement plan for small businesses with 100 or fewer employees. Both employer and employee contributions to employee’s retirement savings are tax-deferred. A Traditional IRA is a tax-deferred retirement account you set up and fund on your own.

  • 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 59½. However, there are exceptions when you may access the funds without paying the tax:

    • 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

  • Do I need to join Wasatch Peaks Credit Union to open a Traditional IRA?

    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.

TAKE THE NEXT STEPS TO SECURE YOUR RETIREMENT

OPEN A ROTH IRA

Call: 801-627-8700

Contact Us

MORE WASATCH PEAKS SAVINGS OPTIONS

Roth IRAs

Pay taxes on your contributions now so you can reap the benefits in the future. Roth IRAs may offer greater tax savings and more flexibility than a Traditional IRA.

Learn More

Saving Certificates

Choose the certificate term to match your goals and use automatic transfer or payroll deduction to save for your pre-planned expenses quickly.

Learn More

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.

Learn More
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