State Employees' Credit Union offers an Individual Retirement
Account (IRA) to assist you in retirement planning. Three types of IRAs are
available: Roth, Traditional and Simplified Employee Pension (SEP).
Features
Current interest rate is % / % APY1
$25 minimum opening deposit
$25 required minimum balance
Dividends compounded daily, paid monthly
No charge to open or service2 the account
Monthly statement
Contributions not required
Recurring funds transfer available for contributions
Accessible via Member Access, ASK SECU, branch and SECU Call Center
Regulations
Funds may not be borrowed or used as security for a loan
6% non-deductible Federal excise penalty for excess contributions
Withdrawals available via branch and Call Center only
IRA Comparison
Roth
Traditional
SEP
Eligibility
Account holder or spouse must have earned income
No age limits
Accountholder must have earned income
Maximum contributing age limit of 70 ½
Employer completes and signs written agreement by tax return date,
providing a copy to the employee
Eligible employees open SEP at institution of choice
Employer determines contribution percentage
No age limit for contributions on behalf of employee
Maximum Annual Contribution
Lesser of annual IRS limit or amount based on account holder's MAGI
Lesser of annual IRS limit or 100% of earned income
Cannot exceed 25% of employee's income up to compensation cap
Distributions
Withdraw regular contributions tax and penalty-free at any time
May begin at age 59 ½ with no penalty; required to begin at age 70 ½
May begin at age 59 ½ with no penalty; required to begin at age 70 ½
Advantages
Contributions can be made at any age
Contributions can be withdrawn tax-free at any time
Earnings are tax-free for all qualified withdrawals
No required distributions after retirement
Possible tax deductible contributions
Earnings on contributions grow tax-deferred
May be converted to a Roth IRA pending certain criteria are met
Allows small businesses to provide pension coverage to employees at no
administrative cost
Self-employed can provide for own retirement
For complete details including account descriptions, terms and conditions,
please review the
IRA Services Brochure.
You may apply for an IRA online via Member Access.
1 Quoted rates and annual percentage yields (APY) are subject to change daily.
2 A service fee of $1 will be charged if the account balance falls below $25.
