Early withdrawal from a share certificate typically results in a penalty – usually a portion of the dividends earned. The penalty amount depends on your term. If you think you may need access before maturity, a money market account may be a better fit.

Minimum opening deposits vary by term and rate tier. Visit our rates page for current requirements.

The main difference is when you pay taxes. A Traditional IRA may reduce your taxable income now — but you pay taxes on withdrawals in retirement. A Roth IRA uses after-tax money upfront, so qualified withdrawals in retirement are tax-free. The right choice depends on your current income, expected retirement income, and tax strategy. DFCU offers two types:

Traditional IRA:

• Best for members who expect to be in a lower tax bracket in retirement.
• Contributions may be tax-deductible in the year you make them.
• Earnings grow tax-deferred until withdrawal.
• Withdrawals in retirement are taxed as ordinary income.
• Required minimum distributions (RMDs) begin at age 73.

Roth IRA

• Best for members who expect to be in a higher tax bracket in retirement, or who want tax-free income later.
• Contributions are made with after-tax dollars – no upfront deduction.
• Earnings grow tax-free.
• Qualified withdrawals in retirement are 100% tax-free.
• No required minimum distributions during the owner’s lifetime.

For Traditional IRAs, penalty-free withdrawals are generally available at age 59½. For Roth IRAs, contributions (not earnings) can typically be withdrawn at any time without penalty; earnings are penalty-free at 59½ if the account has been open for at least five years. Exceptions exist for disability, first-time home purchases, and other qualifying events.

Yes. DFCU can help you roll over eligible employer-sponsored retirement accounts into an IRA. Contact our team to walk through the process and avoid any tax or penalty issues.

DFCU serves members across Michigan and Florida, with branches in communities including the greater Detroit area, Ann Arbor, Lansing, Brighton, and additional locations throughout the state, as well as branches in the Tampa Bay area, Fort Myers, Naples, Orlando, and surrounding communities. Members also have access to more than 1,700 ATMs in Michigan and over 30,000 ATMs nationwide through the Co-op ATM network. Find the location nearest you.