Traditional & Roth IRA Share Certificate

Overview

Guaranteed earnings on
retirement savings

Did you know there’s more than one way to save for retirement? SEFCU Individual Retirement Account (IRA) Share Certificates* help you build your nest egg with a no-risk rate.

Open with just

$500

to earn dividends for retirement!

Features and Benefits

Boost retirement savings

Open with $500 (or more, if you’d like)
Higher dividends than traditional savings accounts
Lock in your rate for six to 60 months (rate varies by term)
No-risk investment; your return is guaranteed
Early withdrawal allowed, but penalized

Rates & Fees

Fixed Rates

Term	Dividend Rate	Annual Percentage Yield**
6 months	2.46%	2.50%
12 months	2.71%	2.75%
18 months	3.19%	3.25%
24 months	3.19%	3.25%
24-month add-on	3.19%	3.25%
36 months	3.44%	3.50%
48 months	3.44%	3.50%
60 months	3.44%	3.50%

Fees

Item	IRS penalty	SEFCU penalty	New York State bank/credit union average penalty^*** (as of July 2018)
Early withdrawal	Additional IRS penalties may apply	Penalty for breaking the Certificate, based on amount withdrawn and the original term length; exceptions are made for withdrawals intended to cover a required minimum distribution	$28.93 – $32.22
Early redemption	Additional IRS penalties may apply	Distributions are usually subject to a SEFCU penalty; exceptions are made in the case of the member having died

^***New York bank/credit union average penalties are accurate as of July 2018, and are published in New York Credit Union Association’s RateWatch.

Qualified Distributions List

Item	IRS penalty
IRA owner will be at least 59 ½ years old in the applicable tax year	None
IRA owner becomes disabled or has died	None
Funds used for qualified higher education expenses	None
Funds are used for a “first-time” home purchase “first-time” home purchase means: The home must be purchased by a grandparent, parent, spouse, child, or grandchild of the IRA owner, or by the IRA owner The home purchaser may not have had his or her name on a mortgage deed in the last three years There is a lifetime limit of $10,000 which can be distributed from the Roth IRA for this purpose	None
Funds are used for medical insurance premiums, provided the IRA owner has been receiving unemployment insurance payments for at least 12 weeks	None
Funds are used to pay the portion of unreimbursed medical expenses in excess of 7.5% of the owner’s adjusted gross income	None
A withdrawal program has been set up as a series of “Substantially Equal Periodic Payments” that are taken over the owner’s life, and are based on the owner’s life expectancy Once this program is set up, it cannot be changed for five years	None
All other withdrawals	Generally, 10% of the withdrawal