Ensure your money works for both your future and the planet. 

Investing in an Fossil-free IRA for clean energy gives immediate financial benefits.

In the modern world, the choices we make with our money are some of the most powerful tools we have for change. When we think about retirement, we often focus on the “what”—the balance in our accounts, the potential for growth, and the security of our future. But there is another question that is just as critical: the “how.” How is that money being used while it sits in your account for 10, 20, or 40 years? Should you be opening up a Fossil-free IRA for your own financial security, and for the health of the planet.

 

For many, the answer is unsettling. While you are saving for a future on this planet, many of the world’s largest financial institutions are using those very same dollars to fund the industries that put that future at risk. At Clean Energy Credit Union, we believe your retirement savings should work for you and for the world you plan to retire in.

Ready to make your retirement fossil-free?

Don’t let your retirement funds be used to undermine the world you want to live in. Join the movement of people who are using their “long-haul” investments to drive the clean energy transition. Your money can work for both your future and the planet—all while you enjoy the tax benefits you deserve and the fee-free banking you’ve been looking for.

In this guide, we will break down the mechanics of Traditional and Roth IRAs, explore why the “big bank” model often contradicts your environmental values, and show how choosing a mission-aligned financial partner can turn your retirement plan into a powerful engine for the clean energy movement.

Investing in an IRA gives immediate financial benefits.

If you want a tax break now, go Traditional. If you want a tax-free “nest egg” later, go Roth.

Before diving into the environmental impact of your banking, it is essential to understand the financial vehicles available to you. The two most popular individual retirement accounts—the Traditional IRA and the Roth IRA—offer distinct tax advantages. Choosing between them depends largely on your current income, your expected income in retirement, and your immediate tax goals.

The Traditional IRA: Tax Savings Today – A Traditional IRA is often the go-to choice for individuals looking to lower their current tax bill.

  • Tax-Deductible Contributions: In many cases, the money you contribute to a Traditional IRA can be deducted from your taxable income for the year. For example, if you earn $60,000 and contribute $7,000 to a Traditional IRA, the IRS may only tax you as if you earned $53,000.
  • Tax-Deferred Growth: Once the money is in the account, you don’t pay taxes on the interest or dividends it earns each year. This allows your balance to compound more efficiently.
  • Taxes at Withdrawal: You pay taxes when you take the money out in retirement. Because most people expect to be in a lower tax bracket once they stop working, this can result in significant long-term savings.

 

The Roth IRA: Tax-Free Growth for the Long Haul – The Roth IRA flipped the script on taxes, offering a “pay now, play later” strategy that is incredibly popular among younger investors and those who expect tax rates to rise.

  • After-Tax Contributions: You do not get a tax deduction for contributions today. You contribute “clean” dollars that have already been taxed.
  • Tax-Free Growth and Withdrawals: This is the Roth’s superpower. As long as you follow the rules (typically holding the account for five years and being at least 59½ years old), every penny of growth—interest, dividends, and capital gains—can be withdrawn completely tax-free.
  • Flexibility: Because you’ve already paid taxes on your original contributions, you can generally withdraw that “principal” amount at any time without penalty, providing a safety net that a Traditional IRA lacks.

The Hidden Cost of Big Bank IRAs

While the tax benefits of an IRA are standard across the board, the impact of those IRAs is not. Most people assume their retirement funds are sitting safely in a digital vault. In reality, banks use your deposits to provide loans and investments.

According to Banking on Climate Chaos report, the world’s 60 largest banks have poured over $5.5 trillion into fossil fuel projects since the Paris Agreement was signed in 2015. When you open an IRA at a “Big Box” bank, your money may be indirectly:

  • Financing new coal-fired power plants.
  • Underwriting oil and gas pipelines through indigenous lands.
  • Supporting deep-sea drilling and fracking.

There is a profound irony in saving for a 2050 retirement using funds that are actively accelerating the climate crisis. Furthermore, many of these large institutions charge “account maintenance fees” or hidden service charges that eat away at your compounding interest. You are essentially paying them to use your money in ways you might not support.

How to Get Started – Transitioning your retirement savings to a mission-aligned institution is easier than you might think. You don’t have to wait until you change jobs or retire to make the switch.

You don’t have to wait until you change jobs to make the switch. Moving your money to a climate-friendly bank is simpler than most people realize.

IRA Transfers:

You can move an existing Traditional or Roth IRA from a big bank to Clean Energy Credit Union through a “trustee-to-trustee transfer.” This is not a taxable event and allows you to divest from fossil fuels immediately.

Rollovers:

If you have an old 401(k) from a previous employer, you can roll it over into a Clean Energy CU IRA.

New Contributions:

Start fresh by opening an account and setting up automatic contributions. With no monthly service charges and a low minimum balance to start, it’s accessible for everyone.

Aligning Your Finances with Your Values

When you choose to house your IRA with us, you are participating in a circular green economy.

At Clean Energy Credit Union, our mission is built into our DNA: to promote clean energy, environmental stewardship, and cooperative enterprises. When you house your IRA with us, you participate in a circular green economy:

Align Your Money with Your Values

Ready to make your retirement fossil-free? Don’t let your retirement funds be used to undermine the world you want to live in. Join the movement of people using their investments to drive the clean energy transition.

Open Your Fossil-Free IRA Today and ensure your money works for both your future and the planet.