Individual Retirement Accounts (IRAs)

Not to humblebrag, but we think the best place to retire is right here in New Mexico. Pair those sweet desert sunsets with a substantial nest egg, and your golden years could be even more… golden.

IRAs offer tax advantages when saving for the future. We offer different IRAs for different financial situations. Talk to a Zia representative about starting the right plan for your particular needs.

See Current Rates | Financial Calculators

  • Tax-advantaged* retirement savings
  • Earn higher dividends than regular savings rates
  • No setup or maintenance fees
  • Annual contribution limits
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • No limits on rollover funds from existing IRA
  • Funds can be used to purchase CDs, stocks, bonds, etc. within IRA
  • No minimum deposit to open
  • Federally insured to $250,000 by NCUA

*Consult your tax advisor.


Payments from your IRA are subject to federal income tax withholding, unless you elect no withholding.

You may change your withholding election at any time prior to your receipt of a payment. To change your withholding election, complete the appropriate form provided by your credit union.

Withholding from IRA payments, when combined with other withholding MAY relieve you from payment of estimated income taxes. However, your withholding election does not affect the amount of income tax you pay.

You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are insufficient.

Traditional vs Roth


  • Anyone under age 70½ may open
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70½

*Consult with a tax advisor.


  • Income must be less than $120,000 annually to open ($177,000 for married couples)
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age

*Subject to some minimal conditions.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.


Once called the Education IRA, a Coverdell Education Savings Account (CESA) provides tax-free earnings when the funds are used for a very specific purpose — education expenses.

There are no age or compensation requirements to open and contribute to a CESA; you do not even need to be related to the student you are contributing for. The interest is 100% tax free and withdrawals can be made at any time when used for qualified education expenses.

  • No annual fee
  • Interest grows tax free
  • Withdrawals tax free when used for qualified education expenses*
  • Contributions are not tax deductible
  • Maximum annual contribution limits per child
  • Contributions can be made until the child is 18 years old
  • Funds must be distributed when recipient reaches age 30
  • Contributors do not have to be related to recipient
  • FDIC insured

*Qualified expenses include tuition and fees, books, supplies, board, etc.