Sierra Pacific offers both Traditional and Roth IRA Accounts with rates generally above the market average. You can open an IRA and start saving for retirement with just $100.

An Individual Retirement Account (IRA) is a type of savings account that is designed to help you save for retirement and offers many tax advantages. There are two different types of IRAs: Traditional and Roth IRAs. The primary difference between a Traditional IRA and Roth IRA is the type of tax benefit each offers. With a Roth IRA, you get no deduction for contributions, but if you follow all the rules your investment earnings will be distributed tax- and penalty-free in retirement. Traditional IRAs can provide a deduction for contributions and you defer taxes on investment earnings until funds are withdrawn, typically in retirement.

Traditional IRA

Traditional IRA accounts allow your earnings to grow tax-deferred. You can invest up to $5,500  of your earned income per year in a Traditional IRA account (or up to $6,500 if you are 50 or older).* You are eligible for penalty-free withdrawals from your Traditional IRA once you are age 59½ or older. Once you reach age 70½ you must take a required minimum distribution (RMD) every year. At 70½, you are also no longer eligible to contribute to a Traditional IRA (consider a Roth IRA if you would like to make contributions past this age).

Roth IRA

Roth IRA accounts allow your earnings to grow tax-free. You can invest up to $5,500 of your earned income per year in a Roth IRA account (or up to $6,500 per year if you are 50 or older).*  You are eligible for tax-free earnings withdrawals from your Roth IRA once you are age 59½ or older and the money has been in the account for at least 5 years. There are no mandatory withdrawals after age 70½, and you can continue to invest in a Roth IRA no matter your age as long as you have earned income and meet the income limits.


*2017 annual limits relating to IRA and Roth IRA  contribution

IRA Rates

Last Updated: July 11, 2024, 2:08 pm

Type Dividend Rate APY Conditions
IRA 0.40% 0.40% APY* $100 to $9,999.99
IRA 10k+ 0.45% 0.450% APY* $10,000 and above
*APY= Annual Percentage Yield. Rates are subject to change without notice.

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Sierra Pacific Federal Credit Union