Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

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Empower future you to live out the retirement you’ve always dreamed of. Start saving today with an IRA.

Key Features

  • Competitive Dividends
  • No Setup Fees
  • Tax Advantages1
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  • Competitive dividends above standard savings rates
  • Traditional and Roth IRA options, as well as SEP IRAs and Coverdell ESAs
  • No setup fees
  • Annual contribution limits apply (see current contribution limits; $6,000 as of 2019)
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase certificates within IRA
  • $25 minimum deposit to open

IRA Accumulator

The Accumulator Account establishes your IRA account at Intrepid Credit Union. This account is a simple way for members to accumulate funds for Traditional IRAs, Roth IRAs, SEP IRAs, or Coverdell ESAs. The minimum balance to open is $25, a minimum balance of $500 is required to avoid the annual fee of $10. Dividends are compounded daily and paid monthly based on balance tiers.

IRA Certificate

The IRA Certificate Account features a higher rate on a fixed term for Traditional IRA, Roth IRA, SEP IRA, or Coverdell ESA funds. You must have an IRA Accumulator to qualify for certificates. Terms range from 12 months to 36 months. Dividends are calculated daily, paid quarterly bases on a tiered structure. An early withdrawal penalty is based on the certificate term.

There are advantages to both Traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A Traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax1
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½
  • Early withdrawals subject to penalty2
  • Mandatory withdrawals at age 70 ½

Roth IRA

  • Income limits to be eligible to open Roth IRA3
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal1
  • Principal contributions can be withdrawn without penalty1
  • Withdrawals on interest can begin at age 59 ½
  • Early withdrawals on interest subject to penalty2
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

1Subject to some minimal conditions. Consult a tax advisor.

2Certain exceptions apply, such as healthcare, purchasing first home, etc.

3Consult a tax advisor.

  • Set aside funds for your child's education
  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses1
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply2
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child
  • The money must be withdrawn by the time he or she turns 303
  • The ESA may be transferred without penalty to another member of the family

Visit the IRS website to learn more about the Coverdell ESA.

1Qualified expenses include tuition and fees, books, supplies, board, etc.

2Consult your tax advisor to determine your contribution limit.

3Those earnings are subject to income tax and a 10% penalty.

  Traditional IRA Roth IRA Simplified Employee Pension IRA Coverdell Education Savings
Who can contribute? Anyone with earned compensation and under age 70 ½ Anyone with earned compensation, MAGI limitations apply Employers and self-employed individuals Anyone, Magi limitations apply for contributions to an ESA account
How much can I contribute annually? 2019-: $6,000 - Catch up provisions for age 50 and older is $1,000 2019-: $6,000- Catch up provisions for age 50 and older is $1,000 May not exceed the lessor of 25% of employees compensation or $53,000 $2,000 for the benefit of a child up to the age of 18; once the child turns age 18, no additional contributions can be made
Are my contributions tax deductible? Tax-deductible (deduction may be reduced or eliminated based on MAGI, pension plans, etc.) No Yes, the employer will be eligible to receive a tax deduction No
What are the tax advantages? Earnings grow tax-deferred until withdrawn and contributions may be tax deductible. Earnings are tax free and penalty free for qualified distributions and there are no required minimum distributions. Interest earned in a SEP IRA grows tax-deferred and allows generous contributions limits. Tax free withdrawals for qualified education expenses.
When can I withdraw without penalties?
  • Qualified higher-education expenses
  • First time home purchase (up to $10,000)
  • Age 59 1/2
  • Disability
  • Qualifying Medical Expense
  • Payments to Beneficiaries upon the owner's death
  • Payments of health insurance premiums while unemployed for 12 weeks or longer
  • Regular contributions can be withdrawn tax-free and penalty- free at any time
  • Earnings are tax and penalty free after meeting the 5-year test and one of the following: - Attain age 59 ½, Death, Disability, First time home buyer (up to $10,000), Qualified medical, health insurance, or education expenses
  • Qualified higher-education expenses
  • First time home purchase (up to $10,000)
  • Age 59 1/2
  • Disability
  • Qualifying Medical Expense
  • Payments to Beneficiaries upon the owner's death
  • Payments of health insurance premiums while unemployed for 12 weeks or longer
  • Withdrawals are tax-free and penalty free for qualified expenses
  • Funds can be transferred from one child’s account to the account of another child in the family under the age of 30
Who owns and has access to my IRA account?   The account must be set up with you as primary owner and only you have access to the IRA account. The account must be set up with you as primary owner and only you have access to the IRA account. The account must be set up with you as primary owner and only you have access to the IRA account. The responsible individual (parent or legal guardian) has access to the Coverdell - the child is the ESA beneficiary.
When do I have to take distributions? At age 70 ½ Never At age 70 ½ By age 30 (can be transferred to eligible family member under the age of 30)
Contribution deadlines? April 15 of the following year April 15 of the following year Employer’s tax-filing deadline April 15 of the following year
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1Consult a tax advisor.