Individual Retirement Accounts (IRA)

It's never too soon to think about retirement, and a Minnesota Valley Federal Credit Union IRA (Individual Retirement Account) is one of the easiest ways to save for your retirement years. We offer both Traditional and Roth IRAs and we pay competitive dividends on each. We also offer Coverdell IRAs, which can be used to save for college expenses. Our IRAs offer various tax advantages, as allowed by law. So, check with your tax advisor to determine which one is right for you.

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Roth IRA vs. Traditional IRA
Contribution Limits for 2024$7,000; $8,000 if age 50 or older by the end of the year$7,000; $8,000 if age 50 or older by the end of the year
Contribution Limits for 2024Single tax filers with modified AGIs of less than $161,000; married couples filing jointly with modified AGIs of less than $240,000Anyone who is not covered by an employer-provided retirement plan can deduct the full IRA contribution, regardless of income
Tax TreatmentNo tax break for contributions; tax-free earnings and withdrawalsTax deduction in contribution year; ordinary income taxes apply on withdrawals
Withdrawal RulesContributions can be made at any time, tax-free and penalty free. After five years and age 59 1/2, all withdrawals (including contributions and earnings) are tax free. Withdrawals are not required during account holder's lifetime. Contribution and earnings can be withdrawn penalty free, beginning at age 59 1/2.
Distributions must begin at age 73.
Extra BenefitsAfter five years, up to $10,000 can be withdrawn penalty-free to cover first time home buyer expensesUp to $10,000 can be withdrawn penalty-free to cover first-time home buyer expenses, but taxes are due on distribution. Contributions will lower taxpayer's AGI, potentially qualifying them for other tax incentives