Compare IRA features and benefits

Thrivent Federal Credit Union offers both Traditional and Roth IRAs – each with its own benefits. Choose the one that gives you the best advantage in saving toward your goals.

Traditional IRA advantages1

Contributions – As long as you've earned income, you may contribute up until the tax year in which you reach age 70½. You may also contribute for a nonwage-earning spouse. For 2018, you can contribute up to $5,500, for 2019 the annual contribution limit has increased to $6,000. If you are age 50 or over by the end of the year, you can contribute an additional $1,000.

Tax Benefits – You may be able to fully deduct your contributions on your tax returns (limits may apply if you or your spouse participates in an employer-sponsored plan). Any earnings are tax-deferred, and you pay the taxes at the time of withdrawal.

Distributions – Though all withdrawals will be subject to ordinary income tax, you may withdraw money at any time. However, if you withdraw money before you reach age 59½, you may also incur an IRS 10% early distribution penalty unless an exception applies2.

Some exceptions include:

  • First home purchase ($10,000 lifetime limit).
  • Higher education expenses.
  • Series of payments based on life expectancy (Substantially Equal Periodic Payments).
  • Eligible unreimbursed medical costs.
  • Total and permanent disability.
  • Payment of account assets upon your death.
  • Medical insurance premiums while unemployed.
  • IRS levy.

With Traditional IRAs, you must begin taking withdrawals in the year in which you turn age 70½.

Roth IRA Advantages1

Contributions – Anyone who meets the guidelines for modified adjusted gross income may contribute to a Roth at any age. For 2018 you can contribute up to $5,500, for 2019 the annual contribution limit has increased to $6,000. There is no tax deduction for your contributions.

In order to invest in a Roth IRA you must meet certain income guidelines. In 2019, your adjusted gross income (AGI) must be:

  • If you are single – Up to $137,000 for 2019 (for the full contribution); $122,000 to $137,000 for 2019 (for a partial contribution somewhat less than the maximum). (These limits increased from $120,000 and $135,000 for 2018.)
  • If you are married and file jointly – Up to $203,000 for 2019 (for the full contribution); $193,000 to $203,000 for 2019 (for a partial contribution). (These limits increased from $189,000 and $199,000 for 2018.)
  • You can make contributions even after age 70½, if you have earned income and meet the income guidelines.

Tax Benefits – Any earnings are tax-deferred and distributions may be tax-free, assuming they meet the criteria below.

Distributions – Distributions of your contributions are always tax-free and can occur at any time. Distributions of earnings would not be tax-free until your Roth IRA is at least five years old and you meet one of the following qualifying2 reasons:

  • Attainment of age 59½.
  • First home purchase ($10,000 lifetime limit).
  • Death or disability.

Account features

Thrivent Federal Credit Union offers you two convenient savings vehicles for Traditional and Roth IRAs – savings accounts and certificates.

IRA Savings Accounts
Dividends Current rates.
Amount to open No minimum deposit.
IRA Certificates
Dividends Current rates.
Transaction Limitations A penalty could be incurred for early withdrawal.
Amount to open An initial deposit of $1,000 opens the account.

1 This information is not intended and should not be construed as legal, investment or tax advice. Please consult your attorney, tax advisor or other appropriate professional for such advice, including advice regarding the benefits of an IRA, the deductibility of contributions and advice on how this information applies to your individual circumstances. Thrivent Federal Credit Union cannot and does not guarantee the accuracy or completeness of this information or its applicability to your individual circumstances and does not bear any liability as a result of your reliance on this information.

2 Thrivent Federal Credit Union does not determine whether a distribution qualifies for the exception. Thrivent Federal Credit Union will report the distribution on form 1099-R as a premature distribution, using a code "1" in Box 7. It is up to the individual to prove to the IRS that the exception applies.