Compare IRA Accounts
No setup, administration or annual maintenance fees are charged on Star One IRA Accounts.
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 July 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 Account | Roth IRA Account | Coverdell Education Savings Account (ESA) | |
|---|---|---|---|
| Qualifications: | Must have earned income. There are no age restrictions. (effective 1/1/2020 SECURE Act) | 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: |
2019-20: |
2019-20: |
2019-20: $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 (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 section below). |
Yes, 2020 contributions phase out between $124,000 - $139,000 for singles and $196,000 - $206,000 for married couples. Married filing separate phase out: $0 - $10,000 Yes, 2019 contributions phase out between $122,000 - $137,000 for singles and $193,000 - $203,000 for married couples. Married filing separate phase out: $0 - $10,000 |
Yes, 2019 - 2020 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 (effective 1/1/2020 SECURE Act) |
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 (effective 1/1/2020 SECURE Act) |
None if: - For payment of qualified education expenses |
| Required Distributions: | Under the SECURE Act effective 1/1/2020, must begin by April 1 following year participant turns 72 | 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: | Under the SECURE Act effective 1/1/2020, there is no age limit | None | Not allowed after attaining age 18 except for special needs children |
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.
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.
* 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.
IRA Information and Help
- Printable IRA and ESA brochures in PDF format
- Call us and ask to speak to one of our IRA Specialists
- Read the IRA Account Disclosure