Individual Retirement Accounts (IRAs)
Whether you want to take luxury vacations or spend your golden years at home in your slippers, planning is a good idea.
If you’re excited to ditch this pesky “job” thing someday, make sure your finances are in order. The first step is opening an Individual Retirement Account (IRA), a personal retirement savings plan. Because IRAs provide valuable tax advantages, they’re a smart choice for planning your future.1
Which IRA is right for you?
We offer two common types of IRAs – Traditional and Roth. Each has its unique benefits and eligibility requirements. To find out which one is right for you, compare the following:
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Eligibility
Eligibility
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Contribution limits
Contribution limits
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Contribution deadline
Contribution deadline
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Income limit
Income limit
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Advantages
Advantages
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Annual charge
Annual charge
Traditional IRA
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Eligibility
Available for all ages
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Contribution limits
$6,500
$7,500 (if age 50 or older) -
Contribution deadline
IRAs must be opened by your tax return filing deadline (not including extensions). For example, you can make contributions for the previous year up until the current year's tax filing deadline (typically April 15).
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Income limit
Anyone is eligible to contribute, but not everyone will receive the tax benefit.
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Advantages
Earnings are tax-deferred until withdrawn. This may help you decrease your taxable income to a lower tax bracket.
No income restrictions. -
Annual charge
$15
Roth IRA
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Eligibility
Available for all ages
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Contribution limits
$6,000
$7,000 (if age 50 or older) -
Contribution deadline
IRAs must be opened by your tax return filing deadline (not including extensions). For example, you can make contributions for the previous year up until the current year's tax filing deadline (typically April 15).
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Income limit
Up to $144,000 for Single filers. Up to $214,000 for Married (combined annual income).
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Advantages
Tax free withdrawals on the principal and all earnings.
No mandatory distribution age.
No minimum withdrawal requirement. -
Annual charge
$15
Ways To Invest
Our Traditional and Roth IRAs are available as IRA Savings or IRA Certificates. What’s the difference? We’re glad you asked:
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What is it?
What is it?
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Who is it for?
Who is it for?
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Available in?
Available in?
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Account minimum?
Account minimum?
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What are the terms?
What are the terms?
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Is it insured?
Is it insured?
IRA Certificate
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What is it?
A guaranteed fixed rate for a specific term. After your certificate matures, you can move it or let it automatically renew with a new fixed rate.
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Who is it for?
Members who want the peace of mind of a steady return on their money.
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Available in?
Traditional and Roth IRAs
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Account minimum?
$2,000
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What are the terms?
Terms from 12 to 60 months
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Is it insured?
Yes, by the NCUA*
IRA Savings
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What is it?
A savings account that earns a variable rate. You aren’t locked into any time frame, so you can enjoy more flexibility.
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Who is it for?
Members with limited starting funds, or anyone who wants the freedom to move their money around.
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Available in?
Traditional and Roth IRAs
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Account minimum?
$25
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What are the terms?
No set terms
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Is it insured?
Yes, by the NCUA*
Current Rates
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ACCOUNT TYPE |
MINIMUM BALANCE* |
DIVIDEND RATE |
APY** |
|---|---|---|---|
|
*Minimum average daily balance required to earn dividends. Membership Shares, IRA Savings, IRA Certificates and Special Savings dividends are based on the average daily balance and are posted quarterly. Checking, Money Market and non-IRA Certificate Accounts are based on the average daily balance and are posted monthly. Certificate Accounts are subject to penalties for early withdrawal. Please contact one of our Financial Services Representatives for further information about applicable fees. IRA Certificates may be subject to additional Internal Revenue Service penalties for early withdrawal. Certificate rates are fixed for the term purchased. All other rates and yields subject to change without notice. **APY is Annual Percentage Yield. Maintenance fee: $15 per year |
|||
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ACCOUNT TYPE IRA Savings Account |
MINIMUM BALANCE* $25 |
DIVIDEND RATE 0.25% |
APY** 0.25% |
|
ACCOUNT TYPE IRA Certificates (CD) with 12 to 23 month term |
MINIMUM BALANCE* $2,000 |
DIVIDEND RATE 3.49% |
APY** 3.55% |
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ACCOUNT TYPE IRA Certificates (CD) with 24 to 35 month term |
MINIMUM BALANCE* $2,000 |
DIVIDEND RATE 3.40% |
APY** 3.45% |
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ACCOUNT TYPE IRA Certificates (CD) with 36 to 47 month term |
MINIMUM BALANCE* $2,000 |
DIVIDEND RATE 3.35% |
APY** 3.40% |
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ACCOUNT TYPE IRA Certificates (CD) with 48 to 59 month term |
MINIMUM BALANCE* $2,000 |
DIVIDEND RATE 3.40% |
APY** 3.45% |
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ACCOUNT TYPE IRA Certificates (CD) with 60 month term |
MINIMUM BALANCE* $2,000 |
DIVIDEND RATE 3.45% |
APY** 3.50% |
IRA FAQs
The minimum deposit to open an IRA account is $25. If you are transferring money from an IRA in another financial institution, we have high rate certificates for balances over $2,000. You will need to complete an IRA application for an individual account. There can be no joint owner, but you can designate a beneficiary.
Anyone who has earned income. This cannot be income from social security, retirement, dividend income, or rental income. You can make a one-time contribution or make several deposits during the year.
You can contribute up to $6,000 ($7,000 if you’re age 50 or older), if you have earned income. Contribution amount cannot exceed income earned for the year. For example, if you work only part-time and earned $900 this year, you can only deposit $900.
Yes. Spousal IRAs are just regular Roth or traditional IRAs that are used by married couples. They are not joint accounts; each IRA is set up in the name of an individual spouse.
Contributions made through April 15 of the current tax year, may be applied to the preceding tax year. In other words, you have 15 1/2 months to make a deposit for any calendar year.
Yes. NCUA insures each IRA up to $250,000. This is in addition to and separate from the $250,000 insurance on the other individual share savings you have in the credit union.
It’s easy. Complete a form we give to you. We’ll mail it to the other institution and they will send the credit union the amount you designate. We take care of the transfer with the other institution so you do not need to handle paperwork and check. You can transfer money by this method an unlimited number of times each year. Another way is the rollover method. You withdraw the money from your IRA in a check made payable to you. You have 60 days from the date of the check to re-deposit the money in an IRA. You can have one rollover in a 12-month period. There is no government penalty for moving your money, if you follow the rules above. However, your institution probably will charge you a fee for a transfer. For example, our fee is $10 to transfer money from the credit union to another institution.
Yes, you must make a withdrawal by April 1 following the year you reach age 73. The amount, which must be withdrawn, is based on the balance and your life expectancy (joint life expectancy of you and your beneficiary). The minimum amount must be distributed every year or the IRS will charge a 50% penalty on the required minimum distribution. This is based on the theory that an IRA is a tax-deferred account for the purpose of funding your retirement.
We charge $15 a year because these accounts require more maintenance, record keeping and reporting than other accounts at the credit union.
All money deposited into the credit union is invested in loans to our members or in insured investments.