Long-Term Savings
Smart, Steady, and Built for the Long Run:
Long-Term Savings Options Through Wauna CU
Planning for the future doesn’t have to be overwhelming, especially when you have the right partner by your side. Wauna Credit Union offers a range of Individual Retirement Account (IRA) options, including Traditional, Roth, and Simplified Employee Pension (SEP) IRAs, as well as Health Savings Accounts (HSAs). Each of these can help you save smartly for retirement and healthcare expenses.
Whether you’re just getting started or fine-tuning your financial plan, we’ll help you choose the path that fits your budget today and your dreams tomorrow.
Individual Retirement Accounts
You have choices for your future and retirement savings. Wauna CU offers three IRAs as part of our overall long-term savings options:
Traditional IRA: Contribute pre-tax dollars to this savings vehicle, which can lower your taxable income for the year. Your money grows tax-deferred and you’ll pay taxes on withdrawals during retirement.
Roth IRA: With a Roth IRA, you fund it with after-tax money, meaning you won’t get a tax break up front. Instead, your earnings and withdrawals in retirement are tax-free, which can be an effective strategy if you expect to be in a higher tax bracket later in life.
SEP IRA: A savings option designed for self-employed individuals or small business owners who want to save for retirement. It allows higher contribution limits than Traditional or Roth IRAs, and contributions are tax-deductible for the business.
| Feature | Traditional IRA | Roth IRA | SEP IRA |
|---|---|---|---|
| Who can contribute | Individuals with earned income | Individuals with qualifying earned income | Employers (including self-employed individuals) |
| Contribution limits (projected for 2026) | Up to $7,500 ($8,600 if 50 or older) | Up to $7,500 ($8,600 if 50 or older) | Up to 25% of compensation or $72,000 (whichever is less) |
| Tax treatment for contributions | Often tax-deductible (depending on income and participation in an employer plan) | Contributions made with after-tax dollars | Employer contributions may be tax-deductible business expenses |
| Taxation on earnings | Earnings grow tax-deferred until withdrawal | Earnings grow tax-free | Earnings grow tax-deferred until withdrawal |
| Taxation on withdrawals | Withdrawals taxed as ordinary income | Qualified withdrawals are tax-free | Withdrawals taxed as ordinary income |
| Early withdrawal penalty | 10% before age 59½ (some exceptions apply) | 10% before age 59½ (some exceptions apply) | 10% before age 59½ (some exceptions apply) |
Health Savings Accounts (HSA)
An HSA is a special savings account that lets you set aside pre-tax money to pay for qualified medical expenses. It’s only available to individuals with a high-deductible health plan though, but it does help reduce taxable income while giving you flexibility in how you pay for healthcare.
HSA contributions are not only tax-deductible, but earnings grow tax-free and withdrawals for qualified medical expenses are also tax-free. Once you turn 65, you can withdraw the funds for any reason, though you might have to pay taxes on this income.
One of the most attractive features of an HSA is how the funds roll over year to year and can even grow through investment options, making it a smart way to save for future medical costs.
