Roth IRA Account Online - Star One Credit Union

Star One Mobile Banking
It's free and secure to use!

Get the Star One Mobile Banking app for your device.
It's free, intuitive, safe and secure to use!

View

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While Roth IRA contributions are not tax-deductible, contributions and earnings can be withdrawn tax-free on qualified distributions.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

Roth IRA Accounts

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

Roth IRA Account Summary

Qualifications:

Must have earned income. There are no age restrictions.

Maximum Contributions:

2020: $6,000, plus $1,000 "catch-up" contribution (if age 50 or over during the year)
2019: $6,000, plus $1,000 "catch-up" contribution (if age 50 or over during the year)

2019 Contribution Deadline:

July 15, 2020

Tax Status of Earnings:

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

Contribution Restrictions:

Yes, 2020 contributions phase out between $124,000 - $139,000 for singles and $196,000 - $206,000 for married couples filing jointly. 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

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.