Skip to the main content MENU 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 You don’t earn tax deductions on your contributions, but your money grows and can be withdrawn tax-free when you retire.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Tax considerations Contributions may be tax deductible; earnings are tax-deferred Contributions are taxable and can be withdrawn tax- and penalty-free at any time; earnings are tax-deferred; certain earnings withdrawals may be tax-free As with a Roth, contributions are taxable; earnings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 Become a PSECU member Before you continue, you must first be a PSECU member. If you are not a PSECU member, . Open an IRA Choose from a Traditional IRA, Roth IRA, or Coverdell ESA. Then add one or both options: IRA Share and IRA Certificate. Fund your IRA Account You can now start contributing funds to your account. Open or Service an IRA Current Rates Valid as of 11/24/2021 2:28 PM 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 Can I add to my Traditional or Roth IRA at any time? Can I add to my Coverdell ESA at any time? How much money do I need to open an IRA? How much money do I need to open a Coverdell ESA? How do I service an existing IRA? When can I withdraw my Roth IRA assets? Financial Tips & Tools Get on the road to savings with these helpful auto-buying resources. Understanding Different Types of Retirement Accounts Even if your retirement is far in the future, it’s important to prioritize today... Roth vs. Traditional IRA Have you thought about how much you’ve saved for retirement or how you’re saving for retirement? Average Retirement Savings by Age Have you begun saving for your retirement? The amount people need to save... 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. 800.237.7328. Products & Services Banking Services Credit Cards Loans Investing Rates PSECU for Employers About Us Our Story Leadership Newsroom Careers Resources Routing Number: 231381116 Find an ATM Member Login Money Management Resources Important Information Privacy Legal Information Disclosures & Agreements Security © 2021 PSECU. 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