Traditional IRA
No IRA setup fees, no IRA administration fees, no annual IRA account maintenance fees.
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
If you and (if married filing a joint tax return) your spouse are not an "active participant" in an employer-sponsored retirement plan, such as a 401(k), your contributions are fully tax-deductible! Otherwise, phase-out rules apply.
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
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.
Traditional IRA Summary
| Qualifications: | Must have earned income. |
| Maximum Contributions: | 2020 - $6,000 $1,000 "catch-up" contribution (if age 50 or over during the year) 2019 - $6,000 $1,000 "catch-up" contribution (if age 50 or over during the year) |
| 2019 Contribution Deadline: | July 15, 2020 |
| 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 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. If you turned 70½ in 2019, you are not eligible for a 2019 Carryback Contribution. |
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
- 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 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.
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.