An IRA is an individual retirement account created by the Taxpayer Relief Act of 1997. IRA accounts are traditionally used as retirement savings accounts. They allow limited contributions to be made throughout the tax year and can be withdrawn within five years after establishing the account, provided you are aged 59 1/2 or older. Distributions are generally tax-free after meeting minimum aging requirements.

Those who work for a living can contribute to an IRA account. The income must be derived from actual work efforts and compensation in the form of wages, tips, salaries, bonuses and professional fees.

There are limits on the amount of income one can make during a given year and the limits change from year to year. Please visit the IRS website for details.

Yes, you will earn interest on the funds that are on deposit at the credit union in your IRA.

No, the amount you contribute to your 401(k) or other employer-sponsored plans will not be affected by your IRA.

Yes, you can maintain both types of IRAs at the same time. You can even make contributions to both types of IRAs in the same year. But your contributions to both Roth and traditional IRAs cannot exceed the maximum contribution limit for all IRAs.