Individual Retirement Account (IRA)
The Credit Union offers an Individual Retirement Account (IRA) to assist you in retirement planning. You may apply for an IRA online via Member Access.Features
- Current interest rate is % / % APY1
- $ minimum opening deposit and required 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, your local branch and our 24/7 Member Services
Regulations
- Funds may not be borrowed or used as security for a loan
- 6% non-deductible Federal excise penalty for excess contributions
Roth IRA
Traditional IRA
Simplified Employee Pension (SEP) IRA
Eligibility
Account holder or spouse must have earned income
No age limits
No age limits
Accountholder must have earned income
No age limits
No age limits
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
Eligible employees open SEP at institution of choice
Employer determines contribution percentage
No age limit for contributions on behalf of employee
Maximum
Annual
Contribution
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 72 or
70 ½3, 4
70 ½3, 4
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Contributions can be withdrawn tax-free at any time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
Contributions can be withdrawn tax-free at any time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
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
Self-employed can provide for own retirement
1 Quoted rates and annual percentage yields (APY) are subject to change daily.
2 A service fee of $ will be charged if the account balance falls below $25.
3 Members born June 30, 1949 or earlier must take their first RMD by April 1 of the year following the year they turn 70 ½. Members born July 1, 1949 or later must take their first RMD by April 1 of the year following the year they turn 72.
4 Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, individuals who were subject to take an RMD for the 2020 tax year are no longer required to take a distribution for 2020.
2 A service fee of $ will be charged if the account balance falls below $25.
3 Members born June 30, 1949 or earlier must take their first RMD by April 1 of the year following the year they turn 70 ½. Members born July 1, 1949 or later must take their first RMD by April 1 of the year following the year they turn 72.
4 Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, individuals who were subject to take an RMD for the 2020 tax year are no longer required to take a distribution for 2020.