Traditional IRA
No setup, administration or annual maintenance fees are charged on Star One IRA Accounts.
Set up a new IRA and get a $100 bonus
Set up a new, or fund an existing, IRA with a $2,500 minimum balance by April 15, 2024 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
- 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
Your contribution may be tax-deductible depending on your tax-filing status, taxable income, and your participation in an employer-sponsored retirement plan.
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).
Traditional IRA Summary
Qualifications: | Must have earned income. There are no age restrictions. |
Maximum Contributions: | 2023: $6,500 2024: $7,000 Plus $1,000 "catch-up" contribution (if age 50 or over during the year) |
2023 Contribution Deadline: | April 15, 2024 |
Tax Status of Earnings: | Tax-deferred until withdrawal |
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: | 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 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: | Prior to the SECURE 2.0 Act, the RMD age began at age 72. If you turn age 72 in 2023 or later, you can now wait until age 73 to begin taking RMDs. If you already turned 73 on January 1, 2023, or later, RMDs cannot be delayed under the new rule. In other words, all Traditional IRA owners born on or before December 31, 1950 are subject to the old rule, which makes the 72nd year the first Required Minimum Distribution year. |
Contribution Age Limit: | None. |
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
- Cancel 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 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 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.
* 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