No setup, administration or annual maintenance fees are charged on Star One IRA and ESA Accounts.
Set up a new, or fund an existing, IRA with a $2,500 minimum balance by April 15, 2024 and get a $100 bonus.*
Traditional IRA Account | Roth IRA Account | Coverdell Education Savings Account (ESA) | |
---|---|---|---|
Qualifications: | Must have earned income. There are no age restrictions. | 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: |
2023: $6,500 |
2023: $6,500 |
$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. However, if you are an active participant in an employer retirement plan, your contribution may not be deductible (See tax-deduction section below). |
Yes, 2024 contributions phase out between $146,000 - $161,000 for singles and $230,000 - $240,000 for married couples. Married filing separate phase out: $0 - $10,000. Yes, 2023 contributions phase out between $138,000 - $153,000 for singles and $218,000 - $228,000 for married couples filing jointly. Married filing separate phase out: $0 - $10,000. |
Yes, 2023- 2024 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 |
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 |
None if: - For payment of qualified education expenses |
Required Distributions: | Must begin by April 1 following year participant turns 73 | 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: | None | None | Not allowed after attaining age 18 except for special needs children |
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 2024 is $77,000 - $87,000, up from $73,000 - $83,000 in 2023.
If you are married and filing a joint return, your deductibility phase-out range for tax year 2024 is $123,000 - $143,000, up from $116,000 - $136,000 in 2023.
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 $230,000 - $240,000 for 2024 and $218,000 - $228,000 for 2023.
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.
* Offer applies to new Contributory Traditional and Roth IRAs or additional contributions to existing Star One IRAs from external funds, transfer or rollover from employer plans or outside IRAs. Transfers from existing Star One IRAs and accounts 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 as a dividend bonus credit. 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.
** Annual Percentage Yield
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