Traditional IRA

If you have earned income and are under the age of 70 ½ this year, you can open your own Traditional IRA regardless of your participation in other retirement plans. PSECU's Traditional Individual Retirement Account (IRA) saves you today because you receive immediate tax-deferred earnings.

Types of Traditional IRAs

  • IRA Certificates
  • IRA Shares

PSECU offers you the unique feature of making recurring contributions for the current calendar year into your IRA on a regular basis through Automatic Transfers. You can make these recurring contributions whether you have a Traditional IRA Certificate, a Traditional IRA Share or both!

There are no PSECU early withdrawal penalties on an IRA Certificate if a member has reached 70½ years of age; the certificate is within the seven-day revocation period; or there is a death of the IRA owner. PSECU will also waive the early withdrawal penalty for early distribution for any purpose recognized by the IRS as a penalty-free distribution. IRA withdrawals may be subject to IRS penalties.

How Are IRAs Insured?

Combined balances of all your PSECU IRA Certificates and IRA Shares are federally insured up to $250,000 by the National Credit Union Administration (NCUA). All of your IRA funds are insured separately from your other PSECU shares.

How Do I Make Changes?

When you want to make changes to an existing IRA, you have the ability to:

  • Make a direct transfer of IRA funds from one financial institution to another
  • Rollover IRA funds from another IRA or qualified plan
  • Make one-time distributions or automatic distributions
  • Converting Traditional IRA funds to Roth IRA Funds (This may require opening a new plan)
  • Recharacterizing (changing) a contribution (Traditional to Roth or Roth to Traditional)

For any changes to your existing IRA, please contact us or log-in.

Deductibility Levels*


Full Deduction Partial Deduction No Deduction
Single Tax Payer MAGI $62,000 or less MAGI more than $62,000 but less than $72,000 MAGI $72,000 or more
Married, Filing Jointly MAGI $99,000 or less MAGI more than $99,000 but less than $119,000 MAGI $119,000 or more
Married, Filing Separately N/A MAGI less than $10,000 MAGI $10,000 or more

*Applicable to Active Participants
MAGI = Modified Adjusted Gross Income

Deductibility Levels if you are not covered by a retirement plan at work


Full Contribution Partial Contribution No Contribution
Single, head of household, or qualifying widower MAGI = Any Amount N/A N/A
Married filing jointly with a spouse who is covered by a plan at work MAGI $184,000 or less MAGI more than $184,000 but less than $194,000 MAGI $194,000 or more
Married filing separately with a spouse who is covered by a plan at work N/A MAGI less than $10,000 MAGI $10,000 or more

MAGI = Modified Adjusted Gross Income

Important: The foregoing is offered solely for the purpose of providing account services information to PSECU members. PSECU does not intend to offer any tax or legal advice. Please contact a competent tax, financial or legal adviser prior to acting on this or any investment information.

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. Dividends will not accrue on the certificate after the maturity date unless it is renewed. A penalty will be imposed for early withdrawal. A minimum daily balance of $500 must be maintained in order to earn the disclosed APY.