Compare IRA Accounts
No setup, administration or annual maintenance fees are charged on Star One IRA Accounts.
| Traditional IRA Account | Roth IRA Account | Coverdell Education Savings Account (ESA) | |
|---|---|---|---|
| Qualifications: | Must have earned income. There are no age restrictions. (effective 1/1/2020 SECURE Act) | Must have earned income. There are no age restrictions. | The designated beneficiary must be an individual under the age of 18. The age-18 limitation will not apply to any designated beneficiary with special needs. |
| Maximum Contributions: |
2019-20: |
2019-20: |
2019-20: $2,000 per beneficiary (ESA contributions do not count against IRA contribution limits) |
| Tax Status of Earnings: | Tax-deferred until withdrawal | Earnings grow tax-deferred. Tax-free on qualified withdrawals | Earnings grow tax-deferred. Tax-free on qualified withdrawals |
| Nonrefundable Tax Credit: | Up to $2000 for certain individuals—income requirements apply | Up to $2000 for certain individuals—income requirements apply | Not applicable |
| Contribution Restrictions: | None if you have earned income (effective 1/1/2020 SECURE Act). However, if you are an active participant in an employer retirement plan, your contribution may not be deductible (See tax-deduction section below). |
Yes, 2020 contributions phase out between $124,000 - $139,000 for singles and $196,000 - $206,000 for married couples. Married filing separate phase out: $0 - $10,000 Yes, 2019 contributions phase out between $122,000 - $137,000 for singles and $193,000 - $203,000 for married couples. Married filing separate phase out: $0 - $10,000 |
Yes, 2019 - 2020 contributions phase out between $95,000 - $110,000 for single tax filers and $190,000 - $220,000 for joint tax filers.
|
| Tax Deduction: | Yes (See Traditional IRA Tax Deduction explanation chart below) | No | No |
| IRS Penalties for Early Withdrawal: | None if: - Over 59 ½ - Death or disability - Qualified medical expenses - Certain health insurance - Qualified college expenses - 1st time home purchase (up to $10,000) - Due to IRS levy - Birth or adoption of a child (effective 1/1/2020 SECURE Act) |
None if: - Over 59 ½ - Death or disability - Qualified medical expenses - Certain health insurance - Qualified college expenses - 1st time home purchase (up to $10,000) - Due to IRS levy - Birth or adoption of a child (effective 1/1/2020 SECURE Act) |
None if: - For payment of qualified education expenses |
| Required Distributions: | Under the SECURE Act effective 1/1/2020, must begin by April 1 following year participant turns 72 | Only after death of the participant | Must be completed 30 days after beneficiary reaches age 30 (except for special needs children) or death |
| Contribution Age Limit: | Under the SECURE Act effective 1/1/2020, there is no age limit | None | Not allowed after attaining age 18 except for special needs children |
Traditional IRA Tax Deduction
Contributions up to the limit are fully tax-deductible if you are not an active participant in an employer-sponsored retirement plan.
If you are an active participant and a single tax filer, your deductibility phase-out range for tax year 2020 is $65,000 - $75,000, up from $64,000 to $74,000 in 2019.
If you are married and filing a joint return, your deductibility phase-out range for tax year 2020 is $104,000 - $124,000, up from $103,000 to $123,000 in 2019.
Note: For an IRA contributor who is not an active participant and is married to someone who is an active participant, the deductibility phase-out range is $196,000 - $206,000 for 2020 and $193,000 - $203,000 for 2019.
CARES Act, SECURE Act 2020 and your IRA
New legislation in 2020 brings flexibility in how you manage your Star One IRA:
- the CARES Act (Coronavirus Aid, Relief and Economic Security Act)
- the SECURE Act 2020 (Setting Every Community Up for Retirement Enhancement Act)
Contribution changes
- Traditional IRA contributions can now be made after age 70½
- Expanded definition of the eligible compensation for Graduate student IRA contributions
- 2019 IRA contributions could be made as late as July 15, 2020
Distribution changes
- Coronavirus-Related Distributions (CRDs) up to $100,000 are allowed—exempt from the 10-percent early-distribution penalty tax
- Distributions may be taken for birth or adoption
- Delayed age for Required Minimum Distributions (RMDs)
- Individuals will not be required to take their 2020 required minimum distributions (RMDs)
Learn more about the CARES Act .
Learn more about the SECURE Act 2020.
IRA Information and Help
- Printable IRA and ESA brochures in PDF format
- Call us and ask to speak to one of our IRA Specialists
- Read the IRA Account Disclosure
Scam and Fraud Alert
Please remember that Star One employees will never call you to verify or ask for your personal information.
Hang up immediately if someone claiming to be a Star One employee asks for any banking information—such as your Online Banking login information, account numbers, card PINs, or one-time passcodes.
A fraudster may try to reassure you that it's OK to share your information—please hang up, it's not OK.
Several Star One members have received phone calls from a person claiming to be a Star One employee—with a caller ID forged to look like a Star One phone number—and whose goal is to gain access to members' bank accounts online.