An older couple enjoy their retirement thanks to a Traditional IRA account.

Traditional IRA Accounts

Your contributions and earnings can grow tax-free until you make withdrawals during retirement.

Request Traditional IRA information

Advantages of a Traditional Individual Retirement Account (IRA)

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    Pay Tax Later

    All or some of your contributions may be tax deductible – you don’t pay taxes until you make withdrawals.

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    Tax-Free Growth

    Because your contributions may be tax-deferred, more of your money can earn returns for longer.

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    Annual Goals

    Set yourself an achievable target to contribute up to $6,500 a year if you’re under 50 or $7,500 if you’re over 50 depending on income.

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    Expand Strategy

    In many cases, you can contribute to an IRA in addition to an employer-sponsored plan like a 401(k).

Jeanne D’Arc Credit Union Traditional IRA Account

  • Best for members who:

    Best for members who:

  • Employment status

    Employment status

  • Contribution limits

    Contribution limits

  • Tax deductible contributions

    Tax deductible contributions

  • Tax on withdrawals

    Tax on withdrawals

  • Dividend Rate

    Dividend Rate

  • APY*


  • Traditional IRA CD Terms

    Traditional IRA CD Terms

  • Traditional IRA CD Fixed Rates

    Traditional IRA CD Fixed Rates

  • Best for members who:

    Want to save for retirement, make tax-deductible contributions, and pay taxes on future withdrawals

  • Employment status

    Employed with taxable income or the non-working spouse of an employed individual (if filing a joint return)

  • Contribution limits

    $6,500 per year (under 50) Tax Year 2023

    $7,500 per year (over 50) Tax Year 2023

  • Tax deductible contributions

    Depends on income

  • Tax on withdrawals

    Withdrawals taxed as regular income 10% penalty for withdrawals before age 59½

  • Dividend Rate


  • APY*


  • Traditional IRA CD Terms

  • Traditional IRA CD Fixed Rates

    See Certificates of Deposit Rates to learn IRA CD rates

Details about Traditional IRA Accounts

When you open a Traditional IRA, you may get immediate tax benefits because you won’t pay taxes on earnings until you start making withdrawals.

  • You must be employed to contribute to an IRA.
  • There’s no maximum age for tax year contributions.
  • In 2023, the maximum contribution is $6,500 if you’re under 50 and $7,500 if you’re over 50 ($6,500 plus $1000 “catch up.”)
  • Your contributions may be tax deductible depending on your income and if you’re in a workplace retirement plan.
  • Your contributions and earnings can grow tax deferred.
  • Your future withdrawals are taxable as “income.”
  • You may need to pay a 10% penalty to the IRS if you withdraw funds before age 59.5
  • Required Minimum Distributions begin when you turn 73.
  • Traditional IRAs are also available as IRA CDs and you may withdraw funds at maturity.

A Traditional IRA is a great choice if you would rather pay taxes in the future so you can enjoy tax deductions now.

Request Traditional IRA Information

A woman calculates contributions into her Traditional IRA Account.

Enjoy these benefits with your Traditional IRA Account

  • Online and Mobile Banking

    Easily view your IRA and other accounts on your phone or another device.

  • Simple Management

    You can make IRA contributions and schedule withdrawals in person or by phone.

  • Deposit Insurance

    Your IRA is federally insured up to $250,000. The Massachusetts Share Insurance Corporation (MSIC) insures larger deposits.

  • Save on Fees

    Watch your money grow with no annual fee or monthly fee, plus enjoy lower rates on loans and higher yields on savings.

How to open a Traditional IRA account

  • Step1
    Deposit $5

    Make sure a Traditional IRA is the best choice for you, then get started with just $5.

  • Step2
    Make Contributions

    Contribute up to your annual limit and enjoy tax deductions based on your income.

  • Step3
    See Growth!

    Watch as your deposits and earnings grow tax-free until your future withdrawals.

I have been a member there for about 10 years. There are enough branches for me to visit whenever I am in Northern Massachusetts or Southern New Hampshire. Service is very good, speedy, and informative.

Louis T.

FAQs about Traditional IRAs

Both Traditional IRAs and Roth IRAs let you make a certain amount of contributions each year based on your age and your total household income. The maximum contributions for both accounts is $6,500 if you’re under 50 and $7,500 if you’re over 50.

The main difference between the two accounts is how you want to handle the taxes:

  • A Traditional IRA allows tax deductions on some or all of your contributions, depending on your income. This means your deposits and earnings can grow tax-free, and then you pay regular income tax on your withdrawals.
  • A Roth IRA doesn’t allow tax deductions on your contributions because you make the contributions from post-tax earned income. Your future withdrawals are tax-free as long as you’re over 59½.
  • There is also a difference when it comes to early withdrawals:
  • With a Traditional IRA, you need to pay a 10% tax for early withdrawals before age 59½ unless you meet the exception criteria.
  • Roth IRAs may have different withdrawal restrictions (or none) depending on the type of account you open (Retirement Statement Savings account, IRA Money Market account, IRA CD.
  • If you meet certain criteria, you can likely withdraw your contributions without penalty but may need to pay taxes and penalties on your earnings.

Another key difference is that, beginning at age 73, a Traditional IRA has Required Minimum Distributions (RMD) but a Roth IRA doesn’t require you to withdraw any particular amount at any time.

It’s a good idea to talk to a retirement specialist if you’re not sure about your best path forward. You can decide which IRA is best for you based on your ideas about your current and future income.

  • If you need as much income as possible right now and you’re confident about your future income, you might benefit from the tax advantages of a Traditional IRA.
  • If you would prefer to contribute post-tax income now so you don’t have to worry about taxes in the future, you might prefer a Roth IRA.

With a Traditional IRA, you generally need to pay a 10% penalty tax on early withdrawals unless you meet one of the following criteria:

  • You use the funds (up to $10,000) to pay for a first-time home purchase.
  • You use the funds to pay for qualified education expenses.
  • You use the funds for qualified expenses related to a birth or adoption.
  • You use the funds to pay for health insurance if you’re unemployed or unreimbursed medical expenses.
  • You become disabled or pass away.

In contrast, a Roth IRA may let you make penalty-free withdrawals of contributions once the account has been open for five years or met other criteria specific to the account. But there may be a penalty for early withdrawal of earnings unless you meet the above criteria.

Beginning with the year you turn 73, you must take Required Minimum Distributions (RMDs) each year. The Credit Union will calculate your RMD for each year by dividing your IRA account balance (as of December 31 of the prior year) by the applicable distribution period or life expectancy.

You will need to check the exact terms of any workplace or employer-sponsored retirement plan. In many cases, you can open an IRA in addition to your other plan but your contributions may be restricted. You may also be able to combine your retirement accounts in a process known as a Rollover.

There are two ways to move your IRA funds:

  • A Trustee Transfer which is done between financial institutions, with the paperwork being initiated by the receiving financial institution. This is not a reportable transaction to the IRS.
  • A Rollover is initiated when an individual makes a withdrawal by check from one IRA and deposits the funds into another IRA elsewhere within the 60 calendar day time limit.
  • The IRS imposes a restriction of one rollover per individual per 365 days. This is a reportable transaction to the IRS and must be indicated on your tax return for the year in which the Rollover is processed. We can assist you with these transactions.

The best way to move funds from a former employer-sponsored retirement plan (i.e., 401(k), Profit Sharing, 457 Plan, etc.) to an IRA is by a Direct Rollover. A Direct Rollover is the direct payment of your vested interest in an employer-sponsored retirement plan to an IRA Trustee or Custodian for your benefit.

You must initiate the rollover through the company that is handling your retirement plan. We can assist you in completing any documentation that is required by your former employer to initiate the process. Upon payout, you will receive a check from the employer plan manager that is made payable to “Jeanne D’Arc Credit Union FBO (for the benefit of) your name”.

The check may either be mailed directly to Jeanne D’Arc Credit Union or to you. If the check is mailed to you, it is your responsibility to make sure the check is delivered to Jeanne D’Arc Credit Union within the 60 day time limit.

No, there is no minimum age requirement to open an IRA account.

No. Unlike many financial institutions, Jeanne D’Arc does not charge annual maintenance fees for IRAs.

There are three deposit options for IRAs:

  • A Retirement Statement Savings account (with a variable rate of interest)
  • An IRA Money Market account (with a variable rate of interest)
  • An IRA CD (fixed rate with terms ranging from 6 to 60 months)

More IRA options from Jeanne D’Arc Credit Union

  • Roth IRA

    Contribute up to $6,500 a year from your post-tax income and then enjoy tax-free growth and withdrawals with no required minimum distributions.

    Learn More

  • Coverdell IRA

    Open an account before your child turns 18 and anyone in the family can contribute earned income to pay for educational expenses.

    Learn More


    A Simplified Employee Pension is a good option if you’re self-employed or a small business owner. It works like a Traditional IRA.

    Learn More


*APY=Annual Percentage Yield. All rates are subject to change, after account opening, without notice. $5.00 Membership Account required.