Roth IRA

Roth Individual Retirement Account

Overview

Tax-free income for retirement

How do you want to spend your retirement? A SEFCU Roth Individual Retirement Account (IRA) can help make it a reality.

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Tax-Free

Growth and dividend withdrawals
(when you meet requirements)

Features and Benefits

Pay taxes now, reap rewards later

  • No minimum deposit
  • Tiered dividend rates
  • Fund with after-tax money
  • Growth is tax-free (but if withdrawn, can be subject to taxes)
  • Contributions can be withdrawn with no penalties
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Rates & Fees

Tiered Dividends

Average Monthly Tier Balances Minimum Opening Deposit Minimum Balance to Obtain APY Dividend Rate Annual Percentage Yield*
Roth IRA $0 –$2,499.99 N/A $1.00 0.25% 0.25%
Roth IRA $2,500 –$9,999.99 N/A $2,500.00 0.40% 0.40%
Roth IRA $10,000 –$24,999.99 N/A $10,000.00 0.50% 0.50%
Roth IRA $25,000 –$49,999.99 N/A $25,000.00 0.65% 0.65%
Roth IRA $50,000 & over N/A $50,000.00 0.80% 0.80%

Fees

Item SEFCU Fee New York State Bank/Credit Union average fee**
(as of July 2018)

IRA Close Plan Fee

$15

 

IRA Transfer Fee

$15

$35.05

Distribution from Contribution

Non-taxable, no IRS penalties

 

Distribution from Earnings:

• Roth IRA is less than five years old

• Withdrawals used for higher education

Taxable, no IRS penalties

 

Distribution from Earnings:

• Roth IRA is less than five years old

• Withdrawals not used for higher education

Taxable, may have IRS penalty

 

Distribution from Earnings:

• Roth IRA is at least five years old

• Owner will be at least 59½ years old during the current tax year

No tax liability, no IRS penalty

 

Distribution from Earnings:

• Roth IRA is at least five years old

• Owner won’t be at least 59½ years old during the current tax year

• Withdrawals are used to pay for qualified higher education expenses, certain medical expenses or for a “First-Time” home purchase

 

“First-Time” home purchase means:

• The home must be purchased by a grandparent, parent, spouse, child or grandchild of the IRA owner or by the IRA owner

• The home purchaser may not have had his or her name on a mortgage deed in the last 3 years

• There is a lifetime limit of $10,000 which can be distributed from the Roth IRA for this purpose

No tax liability, no IRS penalty

 

** New York bank/credit union average fees are accurate as of July 2018 and are published in New York Credit Union Association’s RateWatch.


Compare

See which account is best for you

Roth IRA

  • Fund with after-tax money
  • Earnings are tax-free (but if withdrawn, can be subject to taxes)
  • No required minimum distributions
  • Can continue contributing throughout your lifetime

 

Traditional IRA

  • Fund with pre-tax money
  • Earnings are tax-deferred
  • Must start making withdrawals when you’re 70½
  • Contributions stop when you turn 70½

Learn More


Apply Now

Open a SEFCU Roth IRA today

Current SEFCU member?

Open Today

Not a member?

Join SEFCU

 

Roth IRA

Reap tax benefits in retirement

Put away after-tax money

Earnings are tax-free

Open Today

View Roth IRAs

More to think about...

* Annual Percentage Yield. Rate and APY are variable and are subject to change after the account is opened. APY is accurate as of today – October 22, 2019. Fees may reduce earnings.