Individual Retirement Accounts (IRAs) | Woodstone Credit Union | Federal Way Washington

Individual Retirement Accounts (IRAs)

Being people-powered means we work tirelessly to meet our members’ needs both as they plan for their golden years and as they enjoy them. Our IRAs are born out of a simple mission: to create enriched lives through the collective power of people working together.

So why should you invest in an IRA? An Individual Retirement Account (IRA) is a valuable way to either supplement your employer-sponsored retirement plan or to safeguard your financial future in lieu of one. We offer two kinds of IRA:

Traditional IRA

With a Traditional IRA, your earnings grow tax-deferred, so you won’t owe tax on earnings until you start to make withdrawals. Depending on IRS guidelines, your contributions may even be tax-deductible. Deductible contributions and earnings are taxed at your current income-tax rate when money is withdrawn. Many retirees find themselves in a lower tax bracket than they were when they were younger—hence the tax advantages of a investing in a traditional IRA.

Roth IRA

With a Roth IRA, you pay taxes on contributions but not on distributions. A Roth IRA therefore offers tax-free growth along with more flexible withdrawal options.

Assuming you meet the Modified Adjusted Gross Income (MAGI) limits, no matter how old you are, you can contribute to a Roth IRA as long as you are still working and earning income. Plus, unlike with a Traditional IRA, there are no requirements to take required minimum distributions at age 70½. You may also withdraw your principal prior to retirement without IRS penalty as long as your earnings remain on deposit until you are 59½ years old (certain restrictions apply).

Our IRAs feature:

Open your IRA today.

  • Online: through Online Banking
  • Over the phone: at 253.925.6800 or 800.334.9828
  • In person: at our branch