Individual Retirement Accounts (IRA)
The CARES Act (Coronavirus Aid, Relief and Economic Security Act) and the SECURE Act (Setting Every Community Up for Retirement Enhancement Act), contain important provisions that affect IRA distributions and contribution age limit. Click below to learn more.
[ + ] CARES Act Impact to IRAs
2020 Required Minimum Distributions Waived
Individuals and their beneficiaries will not be required to take their 2020 Required Minimum Distributions (RMDs) from their defined contribution plans or IRAs.
- This RMD waiver would also apply to individuals who turned 70½ in 2019 but did not take their RMD before January 1, 2020.
- The 2020 year will not be counted for purposes of a five-year payout period for a beneficiary (This provision will not alter a required beginning date for years after 2020).
[ + ] SECURE Act Impact to IRAs
Extended IRA Contribution Deadline
- The CARES Act legislation extends the carryback-contribution deadline for tax year 2019 to July 15, 2020.
- You can open and contribute to your IRA until this date.
- The SECURE Act, also known as The Setting Every Community Up for Retirement Enhancement Act, was signed into law on December 20, 2019.
- Many of the SECURE Act’s provisions took effect on January 1, 2020. These provisions offer benefits to IRA owners including extending the contribution age for Traditional IRAs.
- Please contact your Tax or Financial Advisor for questions on how these updates may impact you.
Traditional IRA owners can now contribute after age 70½
- If you work, or have a working spouse, you will be able to contribute to a Traditional IRA even after you reach the age of 70½. This provision may help you accrue additional retirement assets even if you are taking Required Minimum Distributions (RMDs) at the same time that you contribute to your IRAs.
Delayed age for Required Minimum Distributions (RMDs)
- Prior to the SECURE Act, the RMD age began at 70 ½. If you turn age 70½ in 2020 or later, you can now wait until age 72 to begin taking RMDs. If you already turned 70½ by the end of 2019, RMDs cannot be delayed under the new rule. In other words, all Traditional IRA owners born on or before June 30, 1949, are subject to the previous rule, which makes the 70½ year the first RMD year.
- The required beginning date to satisfy your first RMD is now April 1, of the year after you become age 72. However, delaying your distribution could affect your income-tax liability. All subsequent RMDs must be taken by December 31. We recommend you consult your tax advisor with any tax concerns.
Lower your tax burden and save for retirement by investing in an IRA savings and IRA certificate account.
IRA Savings
With Tech CU IRA Savings Accounts you can deposit up to the annual contribution limit and earn high dividends.
- 0.200% dividend rate (0.20% Annual Percentage Yield)
- $25 initial deposit
- $0.01 minimum balance requirement
- No annual maintenance fees
- Dividends calculated daily and paid quarterly
IRA Certificates
Tech CU offers two kinds of IRA Certificates - regular and jumbo - depending on how much you want to invest. Both options are available in Traditional and Roth.
Featured Rate
4.65%APY*
*APY = Annual Percentage Yield. Dividend Rates and Annual Percentage Yield (APY), effective 2/1/2023, are subject to change at any time. Featured rate is for 15 months IRA certificate term. Early withdrawal penalty may apply.
Visit
Retirement Central for:
- Additional Information on IRA products & services.
- Articles on retirement planning and life changes.
- Online help with completing forms for new and existing IRAs.
- Retirement planning tools and calculators.
IRA Certificates and IRA Jumbo Certificates
| Term |
Certificates
Dividend Rate
($1,000 or more)
|
Certificates
Annual Percentage Yield*
($1,000 or more) |
Effective Date
($1,000 or more) |
Jumbo Certificates
Dividend Rate
($95,000 or more) |
Jumbo Certificates
Annual Percentage Yield*
($95,000 or more) |
Effective Date
($95,000 or more) |
| 14 - 29 days |
N/A |
N/A |
N/A |
0.2996% |
0.30% |
8/24/2022 |
| 1 month |
N/A |
N/A |
N/A |
0.3494% |
0.35% |
8/24/2022 |
| 2 months |
N/A |
N/A |
N/A |
0.4492% |
0.45% |
8/24/2022 |
| 3 - 5 months |
0.996% |
1.00% |
11/1/2022 |
0.996% |
1.00% |
11/1/2022 |
| 6 months |
3.961% |
4.00% |
12/1/2022 |
3.961% |
4.00% |
12/1/2022 |
| 9 months |
4.124% |
4.15% |
12/1/2022 |
4.124% |
4.15% |
12/1/2022 |
| 12 - 17 months |
2.967% |
3.00% |
11/1/2022 |
2.967% |
3.00% |
11/1/2022 |
| 15 months** |
4.571% |
4.65% |
2/1/2023 |
N/A |
N/A |
N/A |
| 18 - 23 months |
3.211% |
3.25% |
11/1/2022 |
3.211% |
3.25% |
11/1/2022 |
| 24 - 35 months |
3.211% |
3.25% |
11/1/2022 |
3.211% |
3.25% |
11/1/2022 |
| 36 - 47 months |
3.211% |
3.25% |
11/1/2022 |
3.211% |
3.25% |
11/1/2022 |
| 48 - 59 months |
3.211% |
3.25% |
11/1/2022 |
3.211% |
3.25% |
11/1/2022 |
| 60 months |
3.601% |
3.65% |
11/1/2022 |
3.601% |
3.65% |
11/1/2022 |
Certificates renew automatically at maturity into the same term at the currently offered rate unless you request otherwise. Dividends calculated daily and paid at maturity on certificates less than one year. Dividends calculated daily and paid quarterly on certificates with terms of one year or more. If your certificate is not funded within 30 days from the date it is opened, it will be closed automatically. For all certificates, if you withdraw any portion of your principal before maturity, you may be charged early withdrawal penalties.
**Annual Percentage Yield is accurate as of 2/1/2023 and may change at any time. APY is available to Tech CU members who deposit and maintain a minimum of $1000 of "new to Tech CU" money into a new Certificate account, meaning the total deposit must come from a source external to Tech CU. No maximum deposit applies. Penalties will be imposed for early withdrawals. See Tech CU's Truth in Savings Account Disclosure for more details.
|
- Calculate what it takes to work towards a secure retirement.
- Calculate any projected shortfall or surplus at retirement.
IRA Contribution Limits
| Contribution Type1 |
2022 |
2023 |
| Annual Contribution |
$6,000 |
$6,500 |
| Catch-Up |
$1,000 |
$1,000 |
For more information about our Individual Retirement Accounts, or to open an account stop by one of our branches or call us at (800) 553-0880 or (408) 451-9111.