Individual Retirement Accounts (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.

Manage or Open Your IRA

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.

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. 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.

Contribution Deadlines:

Tax deadline for the year to which contribution applies (typically April 15 of the following year).

Income limits (2023 tax year)*:

Contributions begin phasing out at these Modified Adjusted Gross Incomes (MAGIs): $68,000 for single and head of household or $109,000 if married, filing jointly.

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 You don’t earn tax deductions on your contributions, but your money grows and can be withdrawn tax-free when you retire.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.

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Contributions are taxable and can be withdrawn tax- and penalty-free at any time; earnings are tax-deferred; certain earnings withdrawals may be tax-free.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.

Contribution Deadlines:

Tax deadline for the year to which contribution applies (typically April 15 of the following year).

Income limits (2023 tax year)*:

Contributions begin phasing out at these Modified Adjusted Gross Incomes (MAGIs): $129,000 for single and head of household or $204,000 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.

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.

Contribution Deadlines:

Tax deadline for the year to which contribution applies (typically April 15 of the following year).

Income limits (2023 tax year)*:

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

Before you continue, you must first be a PSECU member. If you're not a PSECU member, join us.

Current Individual Retirement Account (IRA) Rates

Valid as of XX/XX/XXXX
APY*	Dividend Rate
IRA Shares	0.50%	0.50%
3 months	1.50%	1.49%
6 months	4.50%	4.41%
9 months	4.50%	4.41%
12 months	3.95%	3.88%
18 months	2.50%	2.47%
24 months	2.55%	2.52%
36 months	2.60%	2.57%
48 months	2.65%	2.62%
60 months	2.70%	2.67%

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 IRAs 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 a Coverdell ESA savings share, there’s no minimum balance on this account*. 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’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.
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.