An IRA is a personal tax-sheltered retirement savings plan. Millions of American workers are using IRAs to both reduce their taxes and build a more secure future for themselves and their families.

Who Needs an IRA?

Just about everyone who wants to retire comfortably can benefit from an IRA. In order to maintain your current lifestyle, it is estimated that you will need between 70-80% of your pre-retirement income when you retire. Since Social Security will contribute only about 30% and a pension plan approximately 30% more, an IRA can make the difference for a comfortable retirement.

IRAs: Traditional/Roth/Education



Share Accounts




$500 min. | 182 days



$500 min. | 12 months



$500 min. | 24 months



$25,000 min. | 24 months



$25,000 min. | 12 months



DIV = Dividend | APY = Annual Percentage Yield

Are There Different Types of IRAs?

Yes. Contributory IRAs are for wage earning individuals; there are also Education IRAs and Roth IRAs.

What is the Deadline For Opening or Contributing to an IRA?

Contributions to an IRA may be no later than the due date (normally April 15, plus any extensions) of the taxpayer’s return for the tax year.

What if I Work and My Spouse is Not Employed?

The working spouse may contribute on behalf of the non-working spouse up to the maximum contribution.

How Does an IRA Save Me Tax Dollars?

For Federal income tax purposes, contributions to your IRA are deductible depending on your adjusted gross income, up to the maximum allowed by law. You may make this deduction even though you do not itemize other deductions.

During the years the plan is in force, earned dividends are also added to your IRA. These earnings are also tax-deferred. Compounding of the dividend over the years generates more dollars to build a retirement fund significantly larger than would be possible with taxed dollars. In addition, you can realize a further benefit because your IRA contribution may put you in a lower tax bracket.

What Are the Benefits Paid?

Payments may be taken anytime; however, if you choose to take payments before age 59 ½, certain requirements must be met and may be subject to penalties. Payments must start at 70 ½, or upon permanent disability or death (to named beneficiaries). You may elect to receive your retirement in a lump sum, or, if you wish, on a regularly scheduled basis.

What Type of IRA Savings Plan Does the Credit Union Offer?

Dairyland Power Credit Union offers Traditional, Roth and Educational IRAs. We offer both a passbook or term share account for all types of IRAs. The term share accounts have minimum balances of either $500 or $25,000 and are locked in for a specific time period.