Roth IRA Account Online - Star One Credit Union

Roth IRA Accounts

No IRA setup, administration or annual maintenance fees
Convenience of payroll allocations and automated deposits
Automatic IRA distributions available
Automatic renewal on Certificate Accounts with 10-calendar-day grace period beginning on maturity date to make changes
Competitive IRA interest rates
Knowledgeable, qualified staff
Monthly statement

Roth IRA Accounts may offer greater tax savings and withdrawal flexibility than a Traditional IRA. Both Contributory and Conversion plans are available.

While Roth IRA contributions are not tax-deductible, contributions and earnings can be withdrawn tax-free on qualified distributions.

Roth IRA Accounts have no mandatory annual distribution requirements and you can contribute beyond age 70½. Eligibility depends on income.

CARES Act, SECURE Act 2020 and your IRA

New legislation in 2020 brought flexibility in how you manage your Star One IRA.

Learn more about the CARES and SECURE Acts by selecting the links below:

Learn more about the CARES Act
Learn more about the SECURE Act 2020

Roth IRA Account Summary

Qualifications:

Must have earned income. There are no age restrictions.

Maximum Contributions:

2021-2022: $6,000, plus $1,000 "catch-up" contribution (if age 50 or over during the year)

2021 Contribution Deadline:

April 18, 2022

Tax Status of Earnings:

Earnings grow tax-deferred. Tax-free on qualified withdrawals.

Nonrefundable Tax Credit:

You may be eligible to receive a credit (not to exceed $1000 or $2000 for married couples filing jointly) on your contribution if you meet certain requirements.

Contribution Restrictions:

Yes, 2022 contributions phase out between $129,000 - $144,000 for singles and $204,000 - $214,000 for married couples filing jointly. Married filing separate phase-out: $0 - $10,000

Yes, 2021 contributions phase out between $125,000 - $140,000 for singles and $198,000 - $208,000 for married couples. Married filing separate phase-out: $0 - $10,000

Tax Deduction:

IRS Penalties for Early Withdrawal:

None if:

Over 59½
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)

Required Distributions:

Only after death of the participant

Contribution Age Limit:

None

Roth 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

Traditional and Roth IRA Accounts 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.