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 3.8 out of 5 by 11.

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:

Traditional IRA

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: No age limit to open account, as long as you are earning income
Maximum yearly contribution (2020): $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 (2020 tax year²): None
Distributions (withdrawals): Must start by April 1 of the year after participant attains the age of Required Minimum Distribution.

Roth IRA

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 You don’t earn tax deductions on your contributions, but your money grows and can be withdrawn tax-free when you retire.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 (2020): $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 (2020 tax year²): Contributions begin phasing out at these Modified Adjusted Gross Incomes (MAGIs): $124,000 for single and head of household or $196,000 if married, filing jointly
Distributions (withdrawals): No withdrawal requirements

Coverdell Education Savings Account (ESA)

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 (2020): $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 (2020 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

What is the difference between a Roth IRA and a Traditional IRA?

Contributions to a Traditional IRA may be tax deductible in the year for which the contribution was made. Contributions to a Roth IRA are made with money that has already been taxed. Earnings on a Traditional IRA are tax deferred. Earnings on a Roth IRA are tax free if withdrawn for a qualifying event.

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

Can I add to my Traditional or Roth IRA at any time?

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.

Can I add to my Coverdell ESA at any time?

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.

How much money do I need to open an IRA?

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).

How much money do I need to open a Coverdell ESA?

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).

How do I service an existing IRA?

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.

When can I withdraw my Roth IRA assets?

Annual contributions can be withdrawn at any time without IRS penalty. In order to withdraw earnings tax and IRS penalty free, the Roth IRA must be open for 5 years and the withdrawal must be made for one of the following reasons: age 59 1/2, death, disability, or a first home purchase.

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 09/30/2020 5:08 AM EDT
DESCRIPTION	APY*	DIVIDEND RATE
IRA Shares	0.05%	0.05%
3 month Certificate	0.25%	0.25%
6 month Certificate	0.30%	0.30%
9 month Certificate	0.35%	0.35%
12 month Certificate	0.45%	0.45%
18 month Certificate	0.50%	0.50%
24 month Certificate	0.60%	0.60%
36 month Certificate	0.70%	0.70%
48 month Certificate	0.85%	0.85%
60 month Certificate	0.95%	0.95%

*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 1 out of 5 by rhaggerty from Limited Ability to Grow Roth IRA With these Roth IRAs, you are only able to contribute a set monthly amount after you open the account. If you are earning more money while the account is maturing, you are not able to increase that monthly contribution nor make additional contributions adding up to the $6000 that is allowable for Roth IRAs. While I appreciate this product being offered, it seems limited in helping people (especially small business owners) save for retirement as you have to set your contribution limit when you open the account, which means you have to plan on around how much you think you may be able to contribute over the period established for the account to mature.

Date published: 2020-04-24

Rated 1 out of 5 by Harvey from BEWARE Wife opened IRA 5 year. Was told we could do 1 bump up a year. Failed to tell us the bump up would come with a penalty.

Date published: 2018-06-19

Rated 5 out of 5 by Betty from Great Product Great product since you can put money aside and not think about it and use it. You can decide how long to save it for. If you want shorter term since you don't know when you might need it, you can just keep rolling it over until you really need it.

Date published: 2018-05-30

Rated 1 out of 5 by Nothappy from Good product poor service Not polite when i called with an issue. Very disrespectful and never called me back as promised Tempted to close all accounts and go elsewhere.

Date published: 2018-02-22

Rated 5 out of 5 by Dcaz from IRA Works as expeded. Have not had any activity with the account........

Date published: 2017-12-28

Rated 5 out of 5 by dean41 from interest rates are good this product is very good,the people working there are very helpful,hours of operation are good,plus 24 /7 online.

Date published: 2017-11-06

Rated 5 out of 5 by PRQU from Great product Good rates and associates are always so helpful. Thank you for being such a great credit union!

Date published: 2017-10-24

Rated 5 out of 5 by whobboo from Excellent customer service and products All the products offered are first class. Also, when calling or emailing with a question or problem, responses are immediate with explanations one can understand.

Date published: 2017-09-01

Individual Retirement Accounts Reviews - page 2