Traditional IRA

Individual Retirement Account

Overview

Tax-deferred income for retirement

Think you’ll be in a lower tax bracket when you retire? A SEFCU Traditional Individual Retirement Account (IRA) might be a good way to save for your golden years.

 nest egg

Tax-Deductible Contributions

Tax-Deferred Earnings

Features and Benefits

Build a retirement fund

  • No minimum deposit
  • Tiered dividend rates
  • Contributions are tax-deductible
  • Growth is tax-deferred
  • Must take a required minimum distribution when you turn 70½
 bar graph growing

 

Rates & Fees

Tiered Dividends

Average Monthly Tier Balances Minimum Opening Deposit Minimum Balance to Obtain APY Dividend Rate Annual Percentage Yield*
Traditional IRA $0 –$2,499.99 N/A $1.00 0.05% 0.05%
Traditional IRA $2,500 –$9,999.99 N/A $2,500.00 0.10% 0.10%
Traditional IRA $10,000 –$24,999.99 N/A $10,000.00 0.10% 0.10%
Traditional IRA $25,000 –$49,999.99 N/A $25,000.00 0.15% 0.15%
Traditional IRA $50,000 & over N/A $50,000.00 0.20% 0.20%

Fees

Item Fee

IRA Close Plan Fee

$15

IRA Transfer Fee

$15

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 traditional 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 5 years

None

All other withdrawals

Generally 10% of the withdrawal

Compare

See which account is best for you

Traditional IRA

  • Fund with pre-tax money
  • Earnings are tax-deferred
  • Must start making withdrawals when you’re 70½
  • Contributions stop when you turn 70½

 

Roth IRA

  • Fund with after-tax money
  • Earnings are tax-free (but if withdrawn, can be subject to taxes)
  • No required minimum distributions
  • Can continue contributing throughout your lifetime

Learn More

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Open a SEFCU Traditional IRA today

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Traditional IRA

Get tax benefits now

Put away pre-tax money

Earnings are tax-deferred

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View Traditional IRAs

More to think about...

* Annual Percentage Yield. Rate and APY are variable and are subject to change after the account is opened. APY is accurate as of today – December 2, 2021. Fees may reduce earnings.