Invest in a comfortable retirement

A traditional IRA will help you save for retirement with tax-deferred growth.

Open a Traditional IRA
The Run Down
  • Great interest rates — consistently among the best in the country
  • No minimum deposit. No maintenance fee
  • No fee to transfer funds in and out of Alliant
  • At age 701/2, automatically distribute your IRS required minimum distributions
  • Deposit is insured up to $250,000 by NCUA33
  • Dividends compounded every month
  • Contributions may be tax deductible; helping you to reduce your taxes now
1.00 %
0.995 %
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Traditional IRA accounts 101

Traditional IRA accounts are a special type of investment vehicle that allow your earnings to grow tax-deferred. You can invest up to $5,500 per year in a traditional IRA account* or up to $6,500 if you are 50 or older.

You are eligible for penalty-free withdrawals from your traditional IRA once you are age 591/2 or older. Once you reach age 701/2 you must take a required minimum distribution (RMD) every year. At 701/2, you are also no longer eligible to contribute to a traditional IRA (consider a Roth IRA if you would like to make contributions past this age).

Learn more about traditional IRA account contributions and withdrawals.

Learn about the differences between IRA types.


Traditional IRA tax advantages

Traditional IRA accounts grow tax-deferred. Your contributions to a traditional IRA are tax deductible based on your income73. Your earnings also grow tax-deferred, meaning you only pay tax when you make a withdrawal. Thus, traditional IRA accounts may be the best option if you need to reduce your current tax liability and think you’ll be in a lower tax bracket when you eventually withdraw money from the account.

Traditional IRA accounts may be the best option if you think you’ll be in a lower tax bracket when you eventually withdraw money from the account. Compare your earnings with our investment calculator.

Open your Alliant Traditional IRA in two easy steps:

  1. Log in to your account through online banking.

  2. Select "open an account" to open a traditional IRA.

Three ways to build your Alliant Traditional IRA

1. Traditional IRA shares

We offer a great savings rate for members who want to grow their money but still have easy access to it.

2. Traditional IRA certificates

For members planning on a longer horizon for letting their nest egg grow, we offer outstanding certificate rates with terms from 12-60 months. For even higher dividends, explore our jumbo certificate rates.

3. Investment alternative

Alternative IRA investment options are also available through the Alliant Retirement and Investment Services Program.31 Contact a representative today for a no-cost, no-obligation retirement savings analysis that can help you determine which IRA is right for you.

Non-deposit investment products and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution.

Compare Alliant Credit Union IRAs

No matter which type of IRA you select, you'll reduce your taxes and keep more of your money. We’re always here to help. Call an Alliant member consultant at 800-328-1935. We’ll help guide you towards the right IRA for your situation12. Ready to get started? You can open a Traditional IRA account by logging in to online banking.

Traditional IRA

Consider If

You would like to reduce your taxable income now, and you don’t plan on making withdrawals until retirement

Tax Advantages

You may be able to reduce your curent income taxes now. You don't pay taxes until you take money out, typically when you are in a lower tax bracket.

Mandatory Withdrawals

At age 701/2

Roth IRA

Consider If

You would like more flexibility for withdrawals, want to reduce your taxable income or if you're planning to work past age 70

Tax Advantages

All earnings grow tax-free, and you don’t pay taxes when you take money out of the account, typically when you are in a lower tax bracket

Mandatory Withdrawals



Consider If

You are self-employed or are a small business owner

Tax Advantages

You don’t pay taxes until you take money out of the account

Mandatory Withdrawals

At age 701/2

Traditional IRA Rates

1.00 %
0.995 %

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Traditional IRA fees

eStatements (electronic account statements) Free

Traditional IRA FAQs

Where do I send checks for deposit to my Alliant IRA, HSA, or ESA account?

Mailing Address 
Alliant Credit Union
Attn: IRA/HSA Dept.
P.O. Box 66945
Chicago, IL 60666-0945

Overnight Service
Alliant Credit Union
Attn: IRA/HSA Dept.
11545 W. Touhy Avenue
Chicago, IL 60666

Is there a penalty for withdrawing from my traditional IRA before I retire?

The purpose of an IRA is to save for retirement, so this tax-advantaged savings vehicle is specifically designed to discourage investors from withdrawing funds before turning age 59½. If you do so, the IRS imposes an additional 10 percent penalty, which applies to the taxable portion of early withdrawals. There are some exceptions, so please speak with an Alliant representative for more details.

I make too much money to qualify for an IRA tax deduction. Can I contribute to my traditional IRA?

Yes. There are no income limits to make contributions to a traditional IRA. Your ability to make deductions may be affected by filing status and your participation in an employer retirement plan.

When am I required to begin withdrawing money from my traditional IRA?

You must begin to annually withdraw at least minimal amounts from your IRA once you turn 70½ years of age. These guidelines ensure that investors don't use an IRA as a permanent tax shelter from income taxes.

Can I name a beneficiary for my IRA?

Yes. There are specific rules and forms to ensure that your IRA funds are dispersed to your intended beneficiary, in case of death. You can use the Individual Retirement Account Beneficiary Designation/Change form to select your beneficiary.

Is there a limit on the number of IRA rollovers that can be done?

Yes. Effective January 1, 2015, the IRS imposed the new IRA Rollover rule which stipulates that an IRA owner may complete only one IRA-to-IRA rollover per 365 days, regardless of how many IRAs you own, without differentiating between traditional, Roth and SEP IRAs. This change of only one rollover per year will only affect rollovers, and will not have any impact on trustee-to-trustee transfers. The once per 365 day rule does not apply the the direct rollover of 401(k) funds to a traditional IRA.

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