TRADITIONAL VS. ROTH IRA: WHAT’S THE RIGHT FIT FOR YOU?

When it comes to planning for retirement, IRAs (Individual Retirement Accounts) can be powerful tools to help your money grow. But if you’re like many members, you may be wondering: Should I open a Traditional IRA or a Roth IRA? The answer depends on a few key factors — including your current income, tax situation, and long-term goals.

At Campbell Federal Credit Union, we want to make it easy to understand your options so you can make the choice that works best for your future.

What Is a Traditional IRA?

A Traditional IRA lets you contribute pre-tax dollars now, which may reduce your taxable income in the year you contribute. Your money grows tax-deferred, and you’ll pay taxes later — when you withdraw funds in retirement.

Key Benefits:

• Immediate tax break: Contributions may be tax-deductible.*
• Tax-deferred growth: Your earnings aren’t taxed until withdrawal.
• Good for: People who expect to be in a lower tax bracket in retirement.

What Is a Roth IRA?

A Roth IRA is funded with after-tax dollars, meaning you won’t get a tax break upfront — but your money can grow and be withdrawn tax-free in retirement, as long as certain conditions are met.

Key Benefits:

• Tax-free withdrawals: After age 59½ and five years of ownership.*
• No required distributions: You’re not forced to withdraw at a certain age.
• Good for: Younger savers or those expecting to be in a higher tax bracket in retirement.

So… Which IRA Is Right for You?

Here are a few questions to consider:

• Are you trying to reduce your taxable income this year? Traditional might help.
• Do you expect your income (and tax rate) to go up over time? Roth could be a smart bet.
• Do you want flexibility in retirement withdrawals? Roth IRAs give you more options.

When in doubt, it’s always a good idea to consult your tax advisor or financial advisor.

Let Campbell FCU Help You

Whether you’re opening your first IRA or thinking about a rollover, we’re here to help you plan with confidence. Our IRA options come with:

• No maintenance fees
• Federally insured funds
• Local, personalized support

Secure your future today — stop by or give us a call to learn more about opening an IRA with Campbell Federal Credit Union.