Individual Retirement Accounts | Travis Credit Union

Certificate Specials:
3.80% APY* for 4 months, or 3.65% APY* for 7 months.
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IRAs are available for rollovers and transfers, too!

Our no-fee Traditional or Roth Individual Retirement Account (IRA) is a great way to save for the future. An IRA allows you to take advantage of both long-term compounding and tax-deferred or tax-free earnings growth, respectively, to reach your savings goals faster.^**

We can help you rollover money from a retirement plan at a previous employer into an IRA at TCU to keep your money working hard for you. Set up automatic deductions from your TCU savings or checking account to make funding your IRA even easier. We’re here to improve your financial wellness and a TCU IRA with no maintenance fee is a great place to start.

IRA Distribution Q&A

Note: The information below is designed to provide general information concerning IRA accounts. It is not intended to provide legal advice nor to be a detailed explanation of how this information may apply to your individual circumstances. For specific information, you are encouraged to consult your tax or legal professional, IRS Publication 590 for Individual Retirement Accounts, and/or the IRS website at www.irs.gov.

Can I withdraw from my IRA?

IRAs were specifically designed for individuals to save for retirement. Because of the tax breaks that are usually associated with having an IRA, any withdrawals before the age of 59-1/2 are taxed and penalized. (Principal contributions to a Roth IRA may be withdrawn tax and penalty free at any time, however, the earnings will be taxed and penalized) After the age of 59-1/2, IRS penalties no longer apply, however, depending on how the IRA is invested, term or investment based penalties may apply. Contact your financial institution for specific penalties associated with investment types.

Are there any exceptions for withdrawing from an IRA without penalty?

Yes. There are several situations in which the IRS allows for penalty free withdrawals. These are referred to as qualified distributions and are:

Distributions made on or after the date you attain age 59-1/2
Distributions made after at least five years (Roth IRAs only)
Distributions are part of a series of substantially equal periodic payments (Traditional IRAs only)
Distributions made to your beneficiary (or your estate) upon your death
Eligible medical expenses in excess of 7.5% of your adjusted gross income (Traditional IRAs only)
Medical insurance premiums for eligible unemployed individuals (Traditional IRAs only)
Qualified higher education expenses (Traditional IRAs only)
Disability distributions
Qualified first-time home-buyer distributions (up to $10,000)
Distributions paid directly to the IRS due to an IRS levy

What are the taxes when I withdraw from my IRA?

What are the penalties if I take money out before I’m 59-1/2?

If an IRA withdrawal is made and none of the above exceptions apply, the IRS charges a 10% Federal penalty. This is in addition to the taxes that will be due for the amount that is withdrawn. In addition, most states apply a penalty as well (California is 2.5%). Also, depending on how the funds are invested, there may be term or investment penalties that apply. Contact your financial institution for penalties associated with investment types.

Can I have withholding applied to my distribution?

What happens in the event of my death?

Am I ever required to make withdrawals?

How much must I withdraw?

What if I have IRAs at multiple institutions? Can I satisfy my withdrawal requirement from one?

Can I satisfy multiple years of distributions at one time?

What if I forget to take out my required minimum?

Will I get an IRS form each year to tell me how much I have withdrawn from my IRA?

Find a Branch to Open an IRA

IRA Type and Eligibility Q&A

What is a Traditional IRA?

Traditional IRAs were designed to allow individuals to save for their retirement while giving them a tax break now. The idea is to give people the opportunity to relieve some tax liability during their working years and defer it until retirement when they are generally in a lower tax bracket. Contributions are generally tax-deductible depending on your income levels and tax filing status (refer to the IRA Contribution Q&A for specific limits). Contributions can be made to a Traditional IRA based on the eligibility requirements below:

IRA owner must have earned income (exceptions can be made for non-working spouses)

What is a Roth IRA?

Roth IRAs were created through the Taxpayer Relief Act of 1997 to help low and middle income people save for retirement. Contributions made to the Roth IRA are not tax deductible, however, withdrawal of the earnings are generally tax-free when taken for a qualified reason (refer to the IRA Distribution Q&A for specific qualifications). Contributions can be made to a Roth IRA, regardless of age, based on the eligibility limits listed below:

IRA owner must have earned income (exceptions can be made for non-working spouses) MAGI cannot exceed the limits set forth each year by the IRS. Please consult a tax professional for information on the current year’s limits.

Can I establish both a Traditional and a Roth IRA?

What is a SEP IRA?

A SEP IRA was created as a means for small business owners to contribute to a retirement plan for their employees. The employer makes contributions to their employee’s IRA based on certain business requirements. These contributions are in addition to any personal contributions that are made to your Traditional and/or Roth IRAs. Eligibility for a SEP IRA is determined solely by the employer and regulated through IRS guidelines.

Can I convert my Traditional IRA To a Roth IRA?

Can I move my IRA from one institution to another?

Yes. IRAs can be moved from one institution to another as often as desired. This can be done by notifying the financial institution directly and doing a ‘Direct Transfer’ or by making a withdrawal at one institution and ‘Rolling Over’ the funds with another institution. A ‘Direct Transfer’ is a non-reportable transaction and therefore, there is usually less room for error. A ‘Rollover’ reports both the withdrawal and the contribution to the IRS and the two cancel each other out for tax purposes.

Can I invest my IRA in mutual funds?

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IRA Contribution Q&A

How much can I contribute to my IRA?

Contributions can be made to an IRA up to the annual contribution limit or 100% of your earned income, whichever is less. Every year, the IRS adjusts the contribution limits to keep in line with inflation and the cost of living. Please consult a tax professional for the current contribution limits for the current tax year. This is an aggregate total between any Traditional and/or Roth IRA contributions.

What are catch-up contributions?

For years, the maximum limit to contribute to an IRA was fairly low and the IRS did not adjust this amount by the cost of living each year, as they do now. The IRS, realizing that they may not have had practical limits in place, decided to allow individuals that are closer to retiring the ability to ‘catch-up’ on funding their retirement account to make up for lost retirement earnings. Therefore, until an unspecified time, the IRS allows anyone who is 50 years of age or older to contribute an additional $1,100 per year.

Is there a minimum amount that I must contribute?

What is the deadline for making an IRA contribution?

Are my contributions deductible?

Contributions made to a Roth IRA are not tax deductible under any circumstance. Contributions to a Traditional IRA may be partially or fully tax deductible depending on your income level and whether or not you are covered by a qualified retirement plan through your work. The ability to deduct your contributions may change each year depending on your personal situation and may require some additional forms when filing your taxes. Refer to a tax professional for specific recommendations based on your individual tax needs.

Does it make sense to contribute to an IRA if I can’t deduct the contribution?

Can I mix deductible and non-deductible contributions together?

What if I accidentally contribute too much?

If a contribution is made in excess of the maximum limit, you must withdraw these funds as soon as the mistake is realized (be sure to tell your financial institution that this is an excess contribution withdrawal so they may report it properly to the IRS). Depending on how long the funds were on deposit before being removed will determine if there will be tax penalties involved. Refer to a tax professional for specific information.

Will I get an IRS form each year to tell me how much I contributed?

Find a Branch to Open an IRA

*Annual Percentage Yield (APY) on the Certificate Special is accurate as of 04-22-2026 and assumes principal and dividends will remain on deposit until maturity. Dividends compound monthly. Withdrawals may reduce earnings. Penalty for early withdrawal. Minimum opening deposit of $500 is required. Certificate will automatically renew on the maturity date at the nearest available standard term and dividend rate, not to exceed the term of the Certificate Special. Business, IRA and CESA Certificates are eligible for the Certificate Special. Some restrictions apply. Rates and terms are subject to change without notice. See Certificate Account disclosure for complete details. Insured by NCUA.

IRA Certificate Promotion chart comparing terms in months to annual percentage yield
STANDARD TERMS	MINIMUM BALANCE TO OBTAIN APY	DIVIDEND RATE	ANNUAL PERCENTAGE YIELD (APY)
IRA Certificate Specials (Including IRA and CESA) Minimum Initial Deposit $500.
4 months (122 days)	$500	3.74%	3.80%
7 months (213 days)	$500	3.59%	3.65%

**This page is intended to provide general information concerning IRAs, it is not intended to provide legal advice or to be a detailed explanation of the rules or how such rules may apply to your individual circumstances. For specific information, please consult your tax or legal professional. See account disclosure for complete details.