Individual Retirement Account (IRA)

State Employees' Credit Union offers an Individual Retirement Account (IRA) to assist you in retirement planning. Three types of IRAs are available: Roth, Traditional and Simplified Employee Pension (SEP).

Features

• Current interest rate is % / % APY¹
• $ minimum opening deposit
• $25 required minimum balance
• Dividends compounded daily, paid monthly
• No charge to open or service² the account
• Monthly statement
• Contributions not required
• Recurring funds transfer available for contributions
• Accessible via Member Access, ASK SECU, branch and SECU Contact Center

Regulations

• Funds may not be borrowed or used as security for a loan
• 6% non-deductible Federal excise penalty for excess contributions
• Withdrawals available via branch and Contact Center only
• Debits from IRA accounts are subject to limitations as defined in Regulation D

IRA Comparison
	Roth	Traditional	SEP
Eligibility	Account holder or spouse must have earned income No age limits	Accountholder must have earned income Maximum contributing age limit of 70 ½	Employer completes and signs written agreement by tax return date, providing a copy to the employee Eligible employees open SEP at institution of choice Employer determines contribution percentage No age limit for contributions on behalf of employee
Maximum Annual Contribution	Lesser of annual IRS limit or amount based on account holder's MAGI	Lesser of annual IRS limit or 100% of earned income	Cannot exceed 25% of employee's income up to compensation cap
Distributions	Withdraw regular contributions tax and penalty-free at any time	May begin at age 59 ½ with no penalty; required to begin at age 70 ½	May begin at age 59 ½ with no penalty; required to begin at age 70 ½
Advantages	Contributions can be made at any age Contributions can be withdrawn tax-free at any time Earnings are tax-free for all qualified withdrawals No required distributions after retirement	Possible tax deductible contributions Earnings on contributions grow tax-deferred May be converted to a Roth IRA pending certain criteria are met	Allows small businesses to provide pension coverage to employees at no administrative cost Self-employed can provide for own retirement

For complete details including account descriptions, terms and conditions, please review the IRA Services Brochure.

You may apply for an IRA online via Member Access.