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Traditional IRA

No IRA setup fees, no IRA administration fees, no annual IRA account maintenance fees.

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).

CARES Act, SECURE Act 2020 and your IRA

New legislation in 2020 brings flexibility in how you manage your Star One IRA:

  • the CARES Act (Coronavirus Aid, Relief and Economic Security Act)
  • the SECURE Act 2020 (Setting Every Community Up for Retirement Enhancement Act)

Contribution changes

  • Traditional IRA contributions can now be made after age 70½
  • Expanded definition of the eligible compensation for Graduate student IRA contributions
  • 2019 IRA contributions could be made as late as July 15, 2020

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.

Traditional IRA Summary

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

IRA Interest Rates

IRA / ESA Savings

0.70

%

APY (0.70% rate)



6-Month IRA / ESA

0.65

%

APY (0.65% rate)



1-Year IRA / ESA

0.70

%

APY (0.70% rate)



2-Year IRA / ESA

0.75

%

APY (0.75% rate)

 

Open a Traditional IRA

 

Service your Traditional IRA

 

Additional IRA Information and Help



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.