--- title: Why Open an IRA ? description: Retirement may seem far-off but to be prepared, you need to start planning now. Learn about what an IRA actually is and how it can help you in years to come. Read more to find out the difference between Roth IRAs and Traditional IRAs to see which is the best for you! image: https://blog.usccreditunion.org/hubfs/ira-retirement.jpg --- [ATM/Locations](https://www.usccreditunion.org/atm-locator/) [![USC Credit Union](https://blog.usccreditunion.org/hs-fs/file-1104064193-png/images/logo.png "USC Credit Union")](http://www.usccreditunion.org) - [Services](https://www.usccreditunion.org/) - [Bank](https://www.usccreditunion.org/) - [Checking](https://www.usccreditunion.org/product-landing/checking) - [Cardinal Checking](https://www.usccreditunion.org/products/cardinal-checking) - [Gold Checking](https://www.usccreditunion.org/products/gold-checking) - [Trojan Checking](https://www.usccreditunion.org/products/trojan-checking) - [Compare Accounts](https://www.usccreditunion.org/product-comparison/checking-accounts) - [Cards](https://www.usccreditunion.org/product-landing/cards) - [Platinum MasterCard](https://www.usccreditunion.org/products/platinum-mastercard) - [Platinum Rewards MasterCard](https://www.usccreditunion.org/products/platinum-rewards-mastercard) - [Debit/ATM Cards](https://www.usccreditunion.org/products/debit-atm-cards) - [Savings](https://www.usccreditunion.org/product-landing/savings) - [Regular Share](https://www.usccreditunion.org/products/regular-share-savings-account) - [Money Market](https://www.usccreditunion.org/products/money-market) - [Value+ Money Market](https://www.usccreditunion.org/products/value-money-market) - [Share Certificates](https://www.usccreditunion.org/products/share-certificates) - [Compare Accounts](https://www.usccreditunion.org/product-comparison/compare-savings-accounts) - [Borrow](https://www.usccreditunion.org/product-landing/borrow/) - [Vehicles](https://www.usccreditunion.org/product-landing/vehicles) - [Vehicle Loans](https://www.usccreditunion.org/products/vehicle-loans) - [Vehicle Refinancing](https://www.usccreditunion.org/vehicle-refinancing) - [Home Loans](https://www.usccreditunion.org/product-landing/home-loans) - [Purchase Options](https://www.usccreditunion.org/products/purchase-options) - [Refinance Options](https://www.usccreditunion.org/products/refinance-options) - [Home Equity](https://www.usccreditunion.org/products/use-equity) - [Credit Cards](https://www.usccreditunion.org/product-landing/credit-cards) - [Platinum MasterCard](https://www.usccreditunion.org/products/platinum-mastercard) - [Platinum Rewards MasterCard](https://www.usccreditunion.org/products/platinum-rewards-mastercard) - [Compare Credit Cards](https://www.usccreditunion.org/product-comparison/compare-credit-cards/) - [Personal Loans](https://www.usccreditunion.org/product-landing/personal-loans) - [Line of Credit](https://www.usccreditunion.org/product-landing/personal-loans/#Line%20of%20Credit) - [Term Loans](https://www.usccreditunion.org/product-landing/personal-loans/#Term%20Loans) - [Deposit-Secured Loans](https://www.usccreditunion.org/product-landing/personal-loans/#Deposit-Secured%20Loans) - [Student Loans](https://www.usccreditunion.org/product-landing/student-loans) - [In-School](https://www.usccreditunion.org/products/in-school-student-loans) - [Consolidation Loans](https://www.usccreditunion.org/products/consolidation-loan) - [Invest & Retire](https://www.usccreditunion.org/product-landing/invest-retire) - [Invest & Retire](https://www.usccreditunion.org/product-landing/invest-retire) - [Traditional IRA](https://www.usccreditunion.org/products/traditional-ira) - [Roth IRA](https://www.usccreditunion.org/products/roth-ira) - [Coverdell Education Savings](https://www.usccreditunion.org/products/coverdell-education-savings) - [Compare IRA Accounts](https://www.usccreditunion.org/product-comparison/compare-ira-accounts) - [Investment Services](https://www.usccreditunion.org/products/investment-services) - [Resources](https://www.usccreditunion.org/resources/personal-resources/) - [Resources](https://www.usccreditunion.org/resources/personal-resources) - [Personal Resources](https://www.usccreditunion.org/resources/personal-resources) - [Student Resources](https://www.usccreditunion.org/resources/student-resources) - [Calculators](https://www.usccreditunion.org/resources/calculators) - [News & Events](https://www.usccreditunion.org/resources/news-events) - [FAQs](https://www.usccreditunion.org/resources/faqs) - [eBooks](https://www.usccreditunion.org/resources/ebooks) - [Newsletters](https://www.usccreditunion.org/resources/newsletters) - [Requests, Forms & Applications](https://www.usccreditunion.org/resources/requests-forms-applications) - [Access](https://www.usccreditunion.org/product-landing/access) - [Access](https://www.usccreditunion.org/product-landing/access) - [ATMs & Branches Worldwide](https://www.usccreditunion.org/products/atms-and-branches-worldwide) - [Home Banking](https://www.usccreditunion.org/products/home-banking) - [Mobile Banking](https://www.usccreditunion.org/products/mobile-branch-access) - [Online Fund Transfer](https://www.usccreditunion.org/products/online-fund-transfer) - [Bill Pay](https://www.usccreditunion.org/products/bill-pay) - [Direct Deposit](https://www.usccreditunion.org/products/direct-deposit) - [Wire Services](https://www.usccreditunion.org/products/wire-services) - [ACH](https://www.usccreditunion.org/products/ach) - [Membership](https://www.usccreditunion.org/apply-now/) - [Contact Us](https://www.usccreditunion.org/contact-us/) [![USC Credit Union](https://blog.usccreditunion.org/hs-fs/file-1104064193-png/images/logo.png "USC Credit Union")](https://www-dev.usccreditunion.org/) [![location1](https://blog.usccreditunion.org/hs-fs/file-1131853048-png/images/location1.png)](https://www-dev.usccreditunion.org/atm-locator) - [Services](https://www.usccreditunion.org/) - [Bank](https://www.usccreditunion.org/) - [Checking](https://www.usccreditunion.org/product-landing/checking) - [Cardinal Checking](https://www.usccreditunion.org/products/cardinal-checking) - [Gold Checking](https://www.usccreditunion.org/products/gold-checking) - [Trojan Checking](https://www.usccreditunion.org/products/trojan-checking) - [Compare Accounts](https://www.usccreditunion.org/product-comparison/checking-accounts) - [Cards](https://www.usccreditunion.org/product-landing/cards) - [Platinum MasterCard](https://www.usccreditunion.org/products/platinum-mastercard) - [Platinum Rewards MasterCard](https://www.usccreditunion.org/products/platinum-rewards-mastercard) - [Debit/ATM Cards](https://www.usccreditunion.org/products/debit-atm-cards) - [Savings](https://www.usccreditunion.org/product-landing/savings) - [Regular Share](https://www.usccreditunion.org/products/regular-share-savings-account) - [Money Market](https://www.usccreditunion.org/products/money-market) - [Value+ Money Market](https://www.usccreditunion.org/products/value-money-market) - [Share Certificates](https://www.usccreditunion.org/products/share-certificates) - [Compare Accounts](https://www.usccreditunion.org/product-comparison/compare-savings-accounts) - [Borrow](https://www.usccreditunion.org/product-landing/borrow/) - [Vehicles](https://www.usccreditunion.org/product-landing/vehicles) - [Vehicle Loans](https://www.usccreditunion.org/products/vehicle-loans) - [Vehicle Refinancing](https://www.usccreditunion.org/vehicle-refinancing) - [Home Loans](https://www.usccreditunion.org/product-landing/home-loans) - [Purchase Options](https://www.usccreditunion.org/products/purchase-options) - [Refinance Options](https://www.usccreditunion.org/products/refinance-options) - [Home Equity](https://www.usccreditunion.org/products/use-equity) - [Credit Cards](https://www.usccreditunion.org/product-landing/credit-cards) - [Platinum MasterCard](https://www.usccreditunion.org/products/platinum-mastercard) - [Platinum Rewards MasterCard](https://www.usccreditunion.org/products/platinum-rewards-mastercard) - [Compare Credit Cards](https://www.usccreditunion.org/product-comparison/compare-credit-cards/) - [Personal Loans](https://www.usccreditunion.org/product-landing/personal-loans) - [Line of Credit](https://www.usccreditunion.org/product-landing/personal-loans/#Line%20of%20Credit) - [Term Loans](https://www.usccreditunion.org/product-landing/personal-loans/#Term%20Loans) - [Deposit-Secured Loans](https://www.usccreditunion.org/product-landing/personal-loans/#Deposit-Secured%20Loans) - [Student Loans](https://www.usccreditunion.org/product-landing/student-loans) - [In-School](https://www.usccreditunion.org/products/in-school-student-loans) - [Consolidation Loans](https://www.usccreditunion.org/products/consolidation-loan) - [Invest & Retire](https://www.usccreditunion.org/product-landing/invest-retire) - [Invest & Retire](https://www.usccreditunion.org/product-landing/invest-retire) - [Traditional IRA](https://www.usccreditunion.org/products/traditional-ira) - [Roth IRA](https://www.usccreditunion.org/products/roth-ira) - [Coverdell Education Savings](https://www.usccreditunion.org/products/coverdell-education-savings) - [Compare IRA Accounts](https://www.usccreditunion.org/product-comparison/compare-ira-accounts) - [Investment Services](https://www.usccreditunion.org/products/investment-services) - [Resources](https://www.usccreditunion.org/resources/personal-resources/) - [Resources](https://www.usccreditunion.org/resources/personal-resources) - [Personal Resources](https://www.usccreditunion.org/resources/personal-resources) - [Student Resources](https://www.usccreditunion.org/resources/student-resources) - [Calculators](https://www.usccreditunion.org/resources/calculators) - [News & Events](https://www.usccreditunion.org/resources/news-events) - [FAQs](https://www.usccreditunion.org/resources/faqs) - [eBooks](https://www.usccreditunion.org/resources/ebooks) - [Newsletters](https://www.usccreditunion.org/resources/newsletters) - [Requests, Forms & Applications](https://www.usccreditunion.org/resources/requests-forms-applications) - [Access](https://www.usccreditunion.org/product-landing/access) - [Access](https://www.usccreditunion.org/product-landing/access) - [ATMs & Branches Worldwide](https://www.usccreditunion.org/products/atms-and-branches-worldwide) - [Home Banking](https://www.usccreditunion.org/products/home-banking) - [Mobile Banking](https://www.usccreditunion.org/products/mobile-branch-access) - [Online Fund Transfer](https://www.usccreditunion.org/products/online-fund-transfer) - [Bill Pay](https://www.usccreditunion.org/products/bill-pay) - [Direct Deposit](https://www.usccreditunion.org/products/direct-deposit) - [Wire Services](https://www.usccreditunion.org/products/wire-services) - [ACH](https://www.usccreditunion.org/products/ach) - [Membership](https://www.usccreditunion.org/apply-now/) - [Contact Us](https://www.usccreditunion.org/contact-us/) # USC Credit Union Blog # USC Credit Union Blog # Why Open an IRA ? ![ira-retirement.jpg](https://blog.usccreditunion.org/hs-fs/hubfs/ira-retirement.jpg?width=779&name=ira-retirement.jpg) You may not even know what an IRA (individual retirement account) is. That’s okay. We are here to help the confusing become understandable! # What is an IRA? IRA accounts allow you to invest for retirement and comes with tax benefits to help you save for retirement. Both traditional IRAs and Roth IRAs have tax-free money on growth of funds. # [Traditional IRA](https://www.usccreditunion.org/products/traditional-ira/) Good choice if you: - Are eligible for the tax deduction now - Are not eligible for a Roth IRA - Expect to be in a lower tax bracket in retirement   How it differs from Roth IRA: - Must withdraw funds at a certain age or will be penalized - Contributions are tax deductible\* - Allows you to contribute in addition to your retirement plan at work - Consolidate before-tax retirement accounts without paying taxes \*Depends on Modified AGI and if you’re covered by a retirement plan at work # [Roth IRA](https://www.usccreditunion.org/products/roth-ira/) Good choice if you: - Are at or below the Modified Adjusted Gross Income limits - Are seeking tax-free distributions in retirement - Want to avoid required minimum distributions beginning at the age 70 ½ Will be in the same or a higher tax bracket in retirement How it differs from Traditional IRA: - Penalty-free withdrawals - Consolidate after-tax retirement accounts without paying taxes # Contribution: For 2017 and 2018, you can contribute $5,500 to all your IRAs, $6,500 if you are 50 or older. ![ira-contribution.png](https://blog.usccreditunion.org/hs-fs/hubfs/ira-contribution.png?width=609&height=494&name=ira-contribution.png) # How to Open an IRA You can open an IRA at most financial institutions. Things to ask your provider: - Are there any fees associated in opening an account? - What type of investments can be held in the account - What kind of guidance or advice is available? [**At USC Credit Union, we pride ourselves in serving our member-owners.. Check out our retirement investment options here.**](https://www.usccreditunion.org/product-landing/invest-retire/) Sources:  [https://www.bankrate.com/investing/ira/all-about-ira-accounts-for-novices/](https://www.bankrate.com/investing/ira/all-about-ira-accounts-for-novices/) [https://www.wellsfargo.com/help/faqs/investing-ira/](https://www.wellsfargo.com/help/faqs/investing-ira/) [https://www.rothira.com](https://www.rothira.com) - [Tweet](https://twitter.com/share) ## Welcome to our Blog! ### We provide the tools to build a smart financial future. At USC Credit Union we put financial success in your hands. It's your future. Own it. ### Subscribe ### Recent Posts ### Topics - [Students (10)](https://blog.usccreditunion.org/blog/topic/students) - [Home Buying (8)](https://blog.usccreditunion.org/blog/topic/home-buying) - [Budgeting & Saving (6)](https://blog.usccreditunion.org/blog/topic/budgeting-saving) - [Taxes (4)](https://blog.usccreditunion.org/blog/topic/taxes) - [auto loans (4)](https://blog.usccreditunion.org/blog/topic/auto-loans) - [Credit Unions (3)](https://blog.usccreditunion.org/blog/topic/credit-unions) - [Financial Fitness (3)](https://blog.usccreditunion.org/blog/topic/financial-fitness) - [Fraud Awareness (3)](https://blog.usccreditunion.org/blog/topic/fraud-awareness) - [credit cards (3)](https://blog.usccreditunion.org/blog/topic/credit-cards) - [Identity Theft (2)](https://blog.usccreditunion.org/blog/topic/identity-theft) - [Invest (2)](https://blog.usccreditunion.org/blog/topic/invest) - [financial education (2)](https://blog.usccreditunion.org/blog/topic/financial-education) - [Digital Services (1)](https://blog.usccreditunion.org/blog/topic/digital-services) - [IRA (1)](https://blog.usccreditunion.org/blog/topic/ira) - [Managing Debt (1)](https://blog.usccreditunion.org/blog/topic/managing-debt) - [Scholarships (1)](https://blog.usccreditunion.org/blog/topic/scholarships) - [Share Certificates (1)](https://blog.usccreditunion.org/blog/topic/share-certificates) - [account (1)](https://blog.usccreditunion.org/blog/topic/account) - [credit (1)](https://blog.usccreditunion.org/blog/topic/credit) - [credit score (1)](https://blog.usccreditunion.org/blog/topic/credit-score) - [home (1)](https://blog.usccreditunion.org/blog/topic/home) - [usc (1)](https://blog.usccreditunion.org/blog/topic/usc) see all ### Follow Us - [About Us](https://www.usccreditunion.org/apply-now/about-us) - [Contact Us](https://www.usccreditunion.org/contact-us) - [ATM & Branches](https://www.usccreditunion.org/atm-locator) - [Careers](https://www.usccreditunion.org/careers) - [FAQs](https://www.usccreditunion.org/resources/faqs) - [Rates](https://www.usccreditunion.org/rate-summary) - [Forms](https://www.usccreditunion.org/resources/forms/) - [News & Events](https://www.usccreditunion.org/resources/news-events) - [Disclosures](https://www.usccreditunion.org/wp-content/uploads/disclosures.pdf) - [Fees](https://www.usccreditunion.org/wp-content/uploads/fees.pdf) - [Privacy Policy](https://www.usccreditunion.org/wp-content/uploads/privacy-policy.pdf) - [Terms of Use](https://www.usccreditunion.org/terms-of-use) - [Sitemap](https://www.usccreditunion.org/sitemap) - - - - [Federally Insured by NCUA](http://www.ncua.gov/) **If you are using a screen reader or other auxiliary aid and are having problems using this website, please call (877) 670-5860 for assistance.** © 2025 USC Credit Union. All rights reserved. [![logo](https://blog.usccreditunion.org/hs-fs/file-1104064193-png/images/logo.png)](https://www-dev.usccreditunion.org/)