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
The 2019 income-tax filing and payment deadline has been extended to July 15.
New legislation brings flexibility in how you manage your Star One IRA this year:
- the CARES Act (Coronavirus Aid, Relief and Economic Security Act)
- the SECURE Act 2020 (Setting Every Community Up for Retirement Enhancement Act)
Contribution changes
- 2019 IRA contributions may be made as late as July 15
- Traditional IRA contributions can now be made after age 70½
- Expanded definition of the eligible compensation for Graduate student IRA contributions
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