Make an Appointment

Individual Retirement Accounts (IRAs)

Consider These Tax-Advantaged Investments

Thinking About Retirement

An individual retirement account, or IRA, provides tax advantages for retirement savings. There are different IRA solutions available. At First Source, your IRA earns dividends and it is federally insured by NCUA, though there is an early withdrawal penalty. 

We offer Traditional IRAs and Roth IRAs, along with a Money Market IRA and IRA Term Share Certificate. We also offer a New York State 529 College Savings Plan and a Coverdell Education Savings Account (ESA).

ESA vs. 529: Learn More

What is an IRA?

An IRA is simply a place to set money aside for your retirement. The difference between Traditional and Roth IRA options is essentially how you are taxed.

Married couple is happy to review their retirement savings, including individual retirement accounts (IRAs).

Traditional IRA 

A Traditional IRA allows contributions to be tax deferred up front. Any account growth, which includes account interest earned or reinvested, is tax deferred. When you take out money (a distribution), it is taxed as ordinary income. You can take distributions without penalty after you’re 59½ years old, or the IRS will force distributions once you reach age 73. Check contribution and income limits for each year you plan to contribute, as they are subject to change. 

Roth IRA

Where a Traditional IRA gives you a tax deduction on your contributions, a Roth IRA lets you save when you take your money out. Any interest growth, as well as your distributions during retirement, are federal tax-free. A Roth IRA also allows you to make withdrawals of your contributions at any time, for any reason, without penalties or taxes. The growth, or interest, is the only part for which you’ll have to wait until you’re at least 59½ to withdraw without penalties or taxes. There are some restrictions depending on your age and income. Check contribution and income limits for each year you plan to contribute, as they are subject to change.

Infographic: Traditional vs. Roth - Comparing the two types of IRAs

Click to view larger

Which is Best for You?

Generally, if you expect to be in a higher tax bracket in the future, the Roth IRA is a better choice. If you believe you are at or near your highest tax bracket now and will be in a lower bracket when you retire, a Traditional IRA could be a better choice. You’ll also want to consider what you expect your future income tax to be. Depending on your retirement income level, much of your retirement income could be taxable. 

Retire Smarter

If you have any questions, we are here to help. Call 315-735-8571 to discuss your personal financial situation or make an appointment with one of our friendly and knowledgeable representatives today.

Interested In Learning More?

To see what other services are available with a First Source Savings Account, visit our Savings Account Options overview page.

Let’s Get Started

Make an appointment with one of our friendly Member service representatives today.

Make an Appointment

IRA Options

IRA Share

  • IRA Traditional or Roth
  • SEP (Sponsored Employee Plan)
  • Monthly dividends
  • No minimum balance
  • Early withdrawal penalties may apply
  • Direct transfers and rollovers available

IRA Term Share Certificate

  • Direct transfer and rollovers available
  • Automatic renewal options
  • Monthly dividends
  • Fixed, tiered rates based on term
  • Terms from one to four years 
  • $1,000 minimum deposit to open and earn dividends  
  • Early withdrawal penalties may apply
  • Deposits not permitted until maturity

Money Market IRA

  • Direct transfer and rollovers available
  • Monthly dividends
  • Tiered rates
  • $0.01 minimum to earn dividends
  • Early withdrawal penalties may apply

Coverdell Education Savings Account
Coverdell ESA

  • For elementary, secondary or college expenses
  • Tax deferred growth
  • No tax paid on qualified withdrawals
  • Account regulated by the IRS – IRS Coverdell ESA Guidelines


Federally insured by NCUA. Membership eligibility required.