Traditional IRA
No IRA setup fees, no IRA administration fees, no annual IRA account maintenance fees.
Open an IRA and get a $100 Bonus
Open a new IRA plan with a minimum $2,500 balance (or contribute a minimum $2,500 to your existing IRA using non-Star One funds) by April 15, 2020 and get a $100 bonus.*
- Take advantage of tax benefits and tax-deferred interest
- Have more flexibility and control over your investment
- IRAs are separately insured up to $250,000 by the NCUA
- Watch it grow with compounded interest and competitive rates
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).
The SECURE Act 2020 and your IRA
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law on December 20, 2019 and many of of its provisions took effect on January 1, 2020.
- Traditional IRA owners can now contribute after age 70½
- Delayed age for Required Minimum Distributions (RMDs)
- Distribution taken for birth or adoption
- Expanded definition of the eligible compensation for Graduate student IRA contributions
Learn more about the provisions of 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: | April 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.
* IRA bonus offer applies to new traditional and Roth IRA plans, transfer or rollover from employer plans or outside IRAs. Transfers from existing Star One IRAs do not qualify. The minimum of $2500 qualifying assets is the total amount of your deposits and transfers minus any withdrawals. Funding must occur within 90 days of IRA opening. Offer not valid for ESAs. Limit one bonus per member per 12-month period. Bonus will be deposited into your new Star One IRA. Minimum qualifying balance must remain in the IRA for at least 180 days or the length of the certificate term, whichever is longer; otherwise, we may charge back the amount of the bonus awarded to the account. Bonus will not be reported to the IRS as an IRA contribution and any taxes related to the bonus are your responsibility. Other terms and conditions or eligibility criteria may apply. Promo Code IRA BONUS.