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.

Why open an IRA with us?

Our IRA options allow you to pick the account that will best put you on a path to financial freedom. 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.

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.

Traditional IRA

Roth IRA

Coverdell Education Savings Account (ESA)
Description 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. 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 You don’t earn tax deductions on your contributions, but your money grows and can be withdrawn tax-free when you retire.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 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Tax considerations Contributions may be tax deductible; earnings are tax-deferred Contributions are taxable and can be withdrawn tax- and penalty-free at any time; earnings are tax-deferred; certain earnings withdrawals may be tax-free As with a Roth, contributions are taxable; earnings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 No age limit to open account, as long as you are earning income No age limit to open, as long as you are earning income Beneficiary must be under age 18 at time of contribution or qualify as having special needs
Contribution deadlines Tax deadline for the year to which contribution applies (typically April 15 of the following year) Tax deadline for the year to which contribution applies (typically April 15 of the following year) Tax deadline for the year to which contribution applies (typically April 15 of the following year)
Income limits (2021 tax year Contributions begin phasing out at these Modified Adjusted Gross Incomes (MAGIs): $66,000 for single and head of household or $105,000 if married, filing jointly. Contributions begin phasing out at these Modified Adjusted Gross Incomes (MAGIs): $125,000 for single and head of household or $198,000 if married, filing jointly. 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) Must start by April 1 of the year after participant attains the age of Required Minimum Distribution. No withdrawal requirements By the time beneficiary is age 30, unless he/she has special needs

How to open an IRA account

step1

Become a PSECU member

Before you continue, you must first be a PSECU member. If you are not a PSECU member, .

step2

Open an IRA

Choose from a Traditional IRA, Roth IRA, or Coverdell ESA. Then add one or both options: IRA Share and IRA Certificate.

step3

Fund your IRA Account

You can now start contributing funds to your account.

Open or Service an IRA

Current Rates

Valid as of 11/28/2021 9:41 AM EST 
Description APY* Rate
IRA Shares 0.05% 0.05%
3 months 0.20% 0.20%
6 months 0.25% 0.25%
9 months 0.30% 0.30%
12 months 0.45% 0.45%
18 months 0.50% 0.50%
24 months 0.55% 0.55%
36 months 0.65% 0.65%
48 months 0.70% 0.70%
60 months 0.80% 0.80%

*APY denotes Annual Percentage Yield

Rates and information are subject to change 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 10 calendar days after maturity to redeem your certificate without penalty if you do not want to renew. If you have 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 Annual Percentage Yield (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.

FAQs

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.

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.

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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.