Traditional IRA
No setup, administration or annual maintenance fees are charged on Star One IRA Accounts.
View our "IRAs—COVID-19, Retirement, and Beyond" webinar
During this unprecedented time, a new norm has come and new laws were passed, but your goal to live financially stable during retirement more likely has not changed. Please join us in this workshop presented by Star One Certified IRA Professionals to gain essential knowledge on IRAs which encompasses eligibility, portability, distribution, tax reporting and beneficiary options. Participants will also learn how to avoid regulatory pitfalls by recognizing the features of IRAs and uncovering the changes in laws that govern them brought forth by the CARES Act and SECURE Act 2020.
Traditional IRA
- No IRA setup, administration or annual maintenance fees
- Convenience of payroll allocations and automated deposits
- Automatic IRA distributions available
- 10-business-day grace period and automatic renewal on Certificate Accounts
- Competitive IRA interest rates
- Knowledgeable, qualified staff
- Monthly statement
Your contribution may be tax-deductible depending on your tax-filing status, taxable income, and your participation in an employer-sponsored retirement plan.
Investments grow on a tax-deferred basis. Earnings are taxed only upon withdrawal. We offer Contributory, Rollover, Conduit, and Spousal plans. Untaxed Traditional IRA assets are now generally permitted to be rolled over into a qualified retirement plan (employer plan).
CARES Act, SECURE Act 2020 and your IRA
New legislation in 2020 brings flexibility in how you manage your Star One IRA:
- CARES Act (Coronavirus Aid, Relief and Economic Security Act)
- 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
Distribution changes
- Distributions may be taken for birth or adoption
- Delayed age for Required Minimum Distributions (RMDs)
Learn more about the CARES Act .
Learn more about the SECURE Act 2020.
Traditional IRA Summary
| Qualifications: | Must have earned income. There are no age restrictions. |
| Maximum Contributions: | 2021 - $6,000 $1,000 "catch-up" contribution (if age 50 or over during the year) 2020 - $6,000 $1,000 "catch-up" contribution (if age 50 or over during the year) |
| 2020 Contribution Deadline: | May 17, 2021 |
| Tax Status of Earnings: | Tax-deferred until withdrawal |
| Nonrefundable Tax Credit: | You may be eligible to receive a credit (not to exceed $1000) on your contribution if you meet certain requirements. |
| 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 information below). |
| Tax Deduction: | Yes (See Traditional IRA tax-deduction explanation below) |
| IRS Penalties for Early Withdrawal: | None if:
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| Required Distributions: | Under the SECURE act effective 1/1/2020, members who turn 70½ in 2020 or later can now wait until age 72 to begin their required minimum distributions (RMDs). Members who already turned age 70½ by the end of 2019 cannot delay their RMD and are required to withdraw by April 1 following the year participant turns 70½. In other words, members born on or before June 30, 1949 are subject to the old rule, which makes the 70½ year the first distribution year. Members born on July 1, 1949 or later can take advantage of this new rule. |
| Contribution Age Limit: | Effective 1/1/2020 (SECURE Act), Traditional IRA owners can now make 2020 contributions after age 70½. |
IRA Investment Options
- Savings Account - $100 minimum deposit or $25 with automated deposits
- Certificate Accounts - $100 minimum deposit or $25 with automated deposits, 6-month, 1-year and 2-year terms
Additional IRA Information and Help
- Make a one-time contribution to your Traditional IRA
- Set up automatic contributions to your Traditional IRA
- Call us and ask to speak to one of our IRA Specialists
- Read the IRA Account Disclosure
- Elect tax withholding on your IRA distributions
- Compare IRAs
- Learn about Roth IRAs
- Learn about ESAs (Education Savings Accounts)
- Learn more about Traditional IRAs
- Printable IRA and ESA brochures in PDF format
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 2021 is $66,000 - $76,000, up from $65,000 to $75,000 in 2020.
If you are married and filing a joint return, your deductibility phase-out range for tax year 2021 is $105,000 - $125,000, up from $104,000 to $124,000 in 2020.
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 $198,000 - $208,000 for 2021 and $196,000 - $206,000 for 2020.
Traditional and Roth IRAs are separately insured to $250,000 by the National Credit Union Administration, an agency of the United States Government. Coverdell Education Savings Accounts are insured under the same provisions as irrevocable trust accounts.
Scam and Fraud Alert
Several Star One members reported receiving a phone call or text from a person claiming to be from Star One's fraud department with a caller ID reflecting 866-543-5202.
The caller is impersonating a Star One employee to gain your trust with the goal of getting access to your account.
The caller may try to reassure you that it's OK to share your information—please hang up, it's not OK, EVER!