IRA Basics
- You’re eligible to contribute to an IRA if you’ve earned enough income that year to match your contribution amount.
- Open your IRA Share or IRA Certificate account in a branch office. Earnings are either tax-deferred or non-taxed, depending of the type of IRA you open and your income.*
- Our IRA Share Account has no minimum balance requirement.
- An IRA Share Certificate has a minimum balance of $500 with terms of 12, 30 or 48 months.
- Direct rollovers from qualified retirement plans are allowed for an IRA.*
- You may contribute up to $5,500 annually or if you’re age 50 or older, up to $6,500 per year as a "catch up" amount. (Consult your tax advisor about your personal situation.)*
Traditional IRA
- Deposits to a Traditional IRA may be fully tax deductible (consult your tax advisor).*
- Earnings remain tax deferred until withdrawn.*
- Withdrawals are subject to income tax.*
Roth IRA
Your Roth IRA contributions are non-deductible. Because you’re investing after-tax dollars, you can withdraw your principal and earnings tax-free after five years and reaching age 59 ½.*
- Funds can be used for first-time home buying, tax-free.*
- There is no 70 ½ age limit for making contributions.
- Contributions to a Roth IRA have already been taxed.
Coverdell Education Savings Account
This IRA lets you save for a child’s college expenses now. You can contribute up to $2,000 per year, per child. Earnings are tax-free if used for higher education purposes for the beneficiary.
IRA & Education Savings Rates
Information effective June 1, 2023.| Term & Type | Dividend Rate | APY* |
|---|---|---|
| IRA / Education Savings Account | 0.10% | 0.10% |
| 5-Month Certificate** (special, non-renewable) | 3.00% | 3.04% |
| 12-Month Certificate** | 2.25% | 2.27% |
| 14-Month Certificate** (special, non-renewable) | 3.50% | 3.55% |
| 30-Month Certificate** | 2.75% | 2.78% |
| 48-Month Certificate** | 3.25% | 3.29% |
| * APY = Annual Percentage Yield. ** Minimum balance for certificates is $500. Certificate rates are subject to change at any time. Please call for current rates. Your certificate will automatically renew at the rate in effect at the time of maturity unless we are contacted on or before your maturity date; exceptions are the non-renewable 5 Month Certificate (whose funds will be deposited into the member's Share Savings account upon maturity) and the non-renewable 14 Month Certificate (whose funds will be deposited into a 12 Month Certificate upon maturity). You have ten calendar days after maturity to redeem your certificate without penalty if you do not want to review. Upon automatic renewal, the term will be the same as the original term. Penalty for early withdrawal on Certificates and IRAs. IRAs are also subject to IRS penalties. |
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Your savings are federally insured
All Five Star Federal Credit Union share accounts are insured by National Credit Union Administration (NCUA), an agency of the U.S. Government, up to $250,000. Individual Retirement Accounts are insured separately by NCUA, up to an additional $250,000.
Open an IRA in a Five Star branch office to save for your future!
*Please consult your tax advisor who can evaluate your individual situation with regard to Individual Retirement Accounts.