IRAs

Planning for your future has never been easier. Open an individual retirement account (IRA) savings account or certificate. We  have accounts for both education and retirement.

Individual Retirement Accounts is rated 4.0 out of 5 by 11.
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Open or Service an IRA

About IRAs At PSECU

Our IRA options allow you to pick the account that will best put you on a path to financial freedom.  A Traditional or Roth IRA allows you to set aside money for retirement.

A Coverdell Education Savings Account (ESA) can be used to save money for a child's educational expenses.


Why open an IRA with us?

A big benefit is financial security: The National Credit Union Administration (NCUA) federally insures your PSECU retirement accounts up to $250,000. Your IRA funds are insured separately from your other PSECU shares.

By comparison, an IRA you open at a brokerage firm or mutual fund company is not federally insured if it contains investments with variable rates and market fluctuations.


How to open an IRA at PSECU

Pick your plan

Choose from a:
  • Traditional IRA
  • Roth IRA
  • Coverdell ESA

Choose PSECU products for your IRA

Add one or both of these options:
  • IRA Share
  • IRA Certificate

Open an account

Open IRA

Compare Your IRA Choices

We offer three different IRA options:

A Traditional IRA can be a good option if you expect to be in a lower tax bracket when you retire, or if you need to rollover money from a traditional employer retirement plan.1 You pay taxes on money in a Traditional IRA later, when you withdraw it during retirement.

  • Tax considerations: Contributions may be tax deductible; earnings are tax-deferred
  • Age eligibility: To open an account, the owner must be under age 70 ½ by end of year
  • Maximum yearly contribution (2019): $6,000; or $7,000 for anyone who is age 50 or older at year-end (combined limit for both Roth and Traditional IRAs)
  • Contribution deadlines: Tax deadline for the year to which contribution applies (typically April 15 of the following year)
  • Income limits (2019 tax year2): None
  • Distributions (withdrawals): Must start by April 1 of the year after participant turns age 70½

A Roth IRA is a helpful tool if you expect to be in a higher tax bracket when you retire. You don’t earn tax deductions on your contributions, but your money grows and can be withdrawn tax-free when you retire. You also have options for withdrawing your contributions even before retirement.1

  • Tax considerations: Contributions are taxable and can be withdrawn tax- and penalty-free at any time; earnings are tax-deferred; certain earnings withdrawals may be tax-free
  • Age eligibility: No age limit to open, as long as you are earning income
  • Maximum yearly contribution (2019): $6,000; or $7,000 for anyone who is age 50 or older at year-end (combined limit for both Roth and Traditional IRAs)
  • Contribution deadlines: Tax deadline for the year to which contribution applies (typically April 15 of the following year)
  • Income limits (2019 tax year2): Contributions begin phasing out at these Modified Adjusted Gross Incomes (MAGIs): $123,000 for single and head of household or $193,000 if married, filing jointly
  • Distributions (withdrawals): No withdrawal requirements

An ESA is a type of tax-advantaged IRA   families can use to cover educational expenses (elementary, secondary, or college) for children or other beneficiaries.1

  • Tax considerations: As with a Roth, contributions are taxable; earnings grow tax-free until you withdraw them; earnings may be tax-free as long as your beneficiary uses them for qualified educational expenses
  • Age eligibility: Beneficiary must be under age 18 at time of contribution or qualify as having special needs
  • Maximum yearly contribution (2018): $2,000 per beneficiary, from all sources
  • Contribution deadlines: Tax deadline for the year to which contribution applies (typically April 15 of the following year)
  • Income limits (2018 tax year2): Contributions begin phasing out at these MAGIs: full contribution is up to $95,000 for single and head of household or up to $190,000 if married, filing jointly; partial contribution is up to $110,000 for single and head of household, or up to $220,000 if married, filing jointly.
  • Distributions (withdrawals): By the time beneficiary is age 30, unless he/she has special needs

 

Compare your taxable vs. tax-free investment return

How much faster can your money grow in a tax-advantaged account like an IRA? Find out.

Open or Service an IRA

IRAs & ESAs: FAQs

We make it easy to open your IRA or ESA online. Click on “Open IRA” and follow the on-page instructions. Note that to open an online account, you must be at least 18 years old, be an existing PSECU member, meet IRA or ESA qualifications, and have a current U.S. mailing address and Social Security number (SSN). And if you’re not already a PSECU member, no problem. There are many ways to be eligible to join PSECU.

Yes. The National Credit Union Administration (NCUA) federally insures your IRA savings accounts and certificates up to $250,000. That’s the maximum insurable amount allowed by law. In addition to the $250,000 of insurance provided on your individual account or combination of individual accounts, you are also insured up to $250,000 for any combination of accounts (including certificates) you own jointly with other individuals.

It depends on whether your IRA is a share or certificate account. If you have an IRA share, you can add money to your account whenever you like, up to your personal IRA contribution limits. If you’re unsure about your contribution limits, check with your tax or financial advisor.

If you have an IRA certificate, once you open the certificate, you can’t add money to it until its term ends. However, you can preschedule a transfer, so you automatically add money to the certificate as soon as it “matures” (its term ends). You have a 10-day grace period after your certificate matures to add money or transfer your balance to another account. After the 10 days, we’ll automatically re-deposit your balance into another certificate of the same term.

In all cases, it’s your responsibility to make sure you don’t deposit more into your IRA accounts than the current tax law and your personal income limits allow. If you’re unsure about your contribution limits, check with your tax or financial advisor.

It depends on whether your Coverdell ESA is a savings or certificate account. If it’s a savings share, you can add money to the account whenever you like. Your beneficiary is eligible to receive a total of $2,000 in Coverdell account contributions each year, from all sources.

If you have a Coverdell ESA share certificate, once you open the certificate, you can’t add money to it until its term ends. However, you can preschedule a transfer, so you automatically add money to the certificate as soon as it “matures” (its term ends). You have a 10-day grace period after your certificate matures to add money to it or transfer your balance to another account. After the 10 days, we’ll automatically re-deposit your balance into another certificate of the same term.

If you open an IRA share, there’s no minimum balance on this account.3 If you open an IRA share certificate, you can open an account with just $500, no matter which term you choose (from 3 to 60 months).

If you open a Coverdell ESA savings share, there’s no minimum balance on this account.3 If you open an IRA share certificate, you can open an account with just $500, no matter which term you choose (from 3 to 60 months).

You can:

  • Directly transfer IRA funds from one financial institution to another
  • Rollover IRA funds from another IRA or qualified plan
  • Make one-time distributions (withdrawals) or automatic distributions (withdrawals)
  • Convert Traditional IRA funds to Roth IRA funds (but this may require opening a new account)
  • Recharacterize (change) a contribution (Traditional to Roth or Roth to Traditional)

For any changes to your existing IRA, contact us or log into your PSECU account.

1 Additional account details may apply.
2 See IRS Publication 590 for more information about income limitations: www.irs.gov. 
3 If you’re a new PSECU member, you’ll need to deposit a $5 minimum deposit in a Regular Savings Share Account (S1) to create and retain your membership.

Valid as of 12/10/2019 4:10 AM EST
Description APY* Rate
3 months 1.10% 1.09%
6 months 1.25% 1.24%
9 months 1.40% 1.39%
12 months 1.55% 1.54%
18 months 1.70% 1.69%
24 months 1.85% 1.83%
36 months 2.00% 1.98%
48 months 2.15% 2.13%
60 months 2.25% 2.23%

*APY denotes Annual Percentage Yield

Rates and information are subject to change at any time. Recurring deposits may be made into the certificate through automatic transfers (ATS) only. You may set up recurring deposits through ATS within 30 days after the certificate is purchased. Deposits can be stopped or reduced at any time. This rate will be paid until the certificate matures. Your certificate will automatically renew at the rate in effect at the time of maturity unless we are contacted on or before the maturity date. Upon renewal, the term will be the same as the original term. You have ten calendar days after maturity to redeem your certificate without penalty if you do not want to renew. If the member has not contacted PSECU by the maturity date, the certificate will renew for the rate in effect on the date of maturity and for the same term as the original term. A penalty will be imposed for early withdrawal. A minimum daily balance of $500 must be maintained in order to earn the disclosed APY.

This content provided is for informational purposes only. Nothing stated is to be construed as financial or legal advice. PSECU recommends that you seek the advice of a qualified financial, tax, legal or other professional if you have questions.
Rated 4 out of 5 by from good product could use some alternative investment choices besides c d's
Date published: 2017-09-01
Rated 5 out of 5 by from Robert S. Super have for over 20+ years. no issues and it is a great product.
Date published: 2017-08-31
Rated 5 out of 5 by from Great service Staff is always courteous helpful and efficient. PSECU's interest rate is always competitive.
Date published: 2017-08-31
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