Top Results

Traditional IRA

Older couple enjoying retirement on a hike.
Traditional IRA

Set your retirement savings pace

Saving for retirement doesn’t have to be a luxury


Open with just $25


Tax-deductible contributions1


Earnings compound daily, are paid monthly

Save for retirement at your pace

With a Traditional Individual Retirement Account (IRA), contributions may be fully or partially tax-deductible based on your income.

Your contributions grow tax-deferred, which means you are not taxed on the earnings until the funds are distributed1.

For 2024, there is no age limit for making contributions, but you must have earned income. If your filing status is single and you are not an active participant in an employer-sponsored retirement plan, such as a 401(k), your entire contribution is tax-deductible. If you are an active participant in an employer-sponsored retirement plan, the deductibility of your contribution depends on your tax filing status and your income.

Woman with family deciding to open Traditional IRA for her retirement savings.

  • $25 minimum deposit to open and avoid maintenance fees; $1 monthly service fee is charged if balance falls below $25 on statement date
  • Dividends are compounded daily and paid out monthly
  • Rates and annual percentage yields (APY) are subject to change daily
  • Funds withdrawn before age 59½ may be subject to tax and penalties1
  • A 6% non-deductible federal excise penalty may be imposed for excess contributions
  • Must be a Civic member to open a Traditional IRA
Man at working checking the balance of his Traditional IRA account.

  • Ongoing contributions are not required
  • Withdrawals made before age 59½ are generally subject to ordinary income tax and potentially a 10% early withdrawal penalty1, if an exception doesn’t apply
  • Catch-up contributions available for members age 50 and over
  • Cannot borrow funds or use as security for a loan
  • Failure to take the total required minimum distribution each year may result in a 50% excise tax on the amount not distributed
  • You must begin taking required minimum distributions (RMD) by age 72, or age 73 if you reached age 72 after December 31, 2022
  • Any withdrawals (except non-deductible contributions) are subject to regular income taxes
A group of older people enjoying coffee during their retirement.

The IRA contribution limit does not apply to:

  • Rollover contributions or transfers
  • Qualified reservist repayments

Plus, you can take a distribution at any time.

Penalty-free withdrawals1 before age 59½ are allowed if:

  • You are a first-time homebuyer ($10,000 lifetime limit)
  • You are using the withdrawal to pay for certain higher education expenses
  • Certain conditions are met for unemployment or qualifying medical expenses
  • The distribution was a result of disability or death
  • Distributions were part of a series of substantially equal periodic payments
  • You took qualified reservist distribution while serving on active duty
  • Distribution is used to pay a federal tax levy
Older woman calculating Traditional IRA withdrawals.

Traditional IRA rates 

For 2024, you can contribute up to $7,000, or up to your earned income for the year if it is less than $7,000.

Account Type Rate APY1 Minimum Deposit to open
Traditional IRA 2.20% 2.22% $25

Open your IRA

Apply for your Traditional IRA through our partner, Ascensus, and a Civic representative will be in touch and work with you through the process.

For the best member experience, apply using online banking on a computer.

Want tax-free withdrawals? A Roth IRA might be right for you. 

Roth IRA

It's a saving engine.

  • Withdraw money tax and penalty-free
  • Earnings compound daily, paid monthly
  • Contribute after-tax dollars
learn more
You know that details matter. [And you are in good company.]

Here are a few frequently asked questions:

View All FAQs

1 APY = Annual Percentage Yield. Civic membership required to open account. Rate may be subject to change daily at the discretion of the Board of Directors. A service fee of $1 will be charged each month the balance is below $25 at statement date. Fees could reduce the balance on the account. The advice provided is for informational purposes only. Consult a financial advisor or tax professional for additional guidance. This is a Share IRA account and is not an investment account.