Stark Federal Credit Union has three types of IRAs available...
Roth IRAS
What is a Roth IRA? Working people can now contribute up to $6,000 per year of their earned income, or up to $7,000 if you are age 50 and older. Your qualified withdrawals will be tax-free - both principal and interest!
What Makes a Withdrawal "Qualified"? To avoid early withdrawal penalties as well as paying taxes on the amount withdrawn, you must hold the Roth IRA account at least five years (beginning with the tax year in which you open the account). In addition, a qualified withdrawal must also be:
- Paid to you when you are at least 59 and a half years old; OR
- Paid to you if you become disabled (as defined by the IRS code); OR
- Paid to your heirs or estate after your death; OR
- Used to purchase a first home
Are there other benefits to the Roth IRA?
- Individuals earning up to $139,000 and married couples filing jointly with a combined income up to $206,000 are eligible. These income limits are much higher than for a regular IRA.
- You can fund a Roth IRA even if you are covered by a company retirement plan such as a pension, 401(k), or profit sharing.
- There are no time limits for making contributions. As long as you continue working, you may make contributions to your Roth IRA.
- Similarly, you are never required to make withdrawals from a Roth IRA.
| Balance Tier | Dividend Rate | APY* |
|---|---|---|
| $0.00 - $199.99 | 0% | 0% APY* |
| $200 and greater | .75% | .75% APY* |
Traditional IRAs
What is a Traditional IRA? Contributions into the plan may be tax-deductible (consult your tax advisor regarding the deductibility of IRA contributions) and the earnings grow tax-deferred until retirement. You don't pay taxes until you withdraw the money, which if taken at retirement, may be taxed at a lower rate. In addition, you will have until April 1 of the year following the year you turn 72 to begin taking your first required minimum distribution - or, age 70 ½ in 2019 or earlier. As long as you have earned income you may contribute to your traditional IRA, not to exceed your annual amount.
What are the benefits of a Traditional IRA? The plan may allow you to reduce your income tax liability for the year you're making the contribution, plus your tax-deferred earnings grow faster than a comparable taxable investment.
| Balance Tier | Dividend Rate | APY* |
|---|---|---|
| $0.00 - $199.99 | 0% | 0% APY* |
| $200 and greater | .75% | .75% APY* |
Coverdell Education Savings Accounts
What is a Coverdell Educational Savings Account? An Education Savings Account (ESA), formerly Education IRA, is a terrific way for parents, grandparents and others to help meet the rising costs of a student's education.
What are the benefits of an ESA? For taxable years beginning in 2002, the annual contribution amount has been increased from $500 per beneficiary to $2,000 per beneficiary. The earnings grow tax-free. And now, your ESA can be used to pay qualified elementary school and secondary school expenses as well as those for higher education.
For more information on the new ESA program, call 330-493-8325.
| Balance Tier | Dividend Rate | APY* |
|---|---|---|
| $0.00 - $199.99 | 0% | 0% APY* |
| $200 and greater | .75% | .75% APY* |
* APY=Annual Percentage Yield. APY may be lower than rate depending on the average daily balance in the account for the dividend period. Fees may reduce earnings. Rate subject to change. A member will lose dividends if the account is closed before accrued dividends are credited. Minimum balance of $200 is required to earn dividends. Each member account is insured to $250,000 by the NCUA. Dividends are paid quarterly. Call for current rates and information. Rates effective 12/21/2022.
IRA CERTIFICATE RATES
Growth Certificate (Less than $10,000)
| Term | Dividend Rate | Annual Percentage Yield |
|---|---|---|
| 1 Year | 4.92% | 5.01% |
| 2 Year | 3.15% | 3.19% |
Jumbo Certificate ($10,000 and more)
| Term | Dividend Rate | Annual Percentage Yield |
|---|---|---|
| 1 Year | 4.92% | 5.01% |
| 2 Year | 3.35% | 3.39% |
*APY = Annual Percentage Yield. All rates are subject to change. Early withdrawal penalties apply if share certificate is closed before the end of maturity period. Minimum of $500 is required for other Growth Share Certificates and a minimum of $10,000 is required for Jumbo Share Certificates. Rates effective 9/18/23
