IRA Rates

Planning for your retirement can not begin too soon. And with compound interest, the earlier you start that more you'll have when it's time to retire. The U.S. Government has provided you and your family a number of retirement savings vehicles. TopMark Federal Credit Union offers you some conservative and well-protected retirement savings products.

Which IRA is best for you?
Selecting the appropriate IRA for your needs depends upon your individual economic situation and the taxes that you will pay on each type of IRA. The table below highlights some of the differences. We recommend that you consult with a professional tax advisor to select your best option.

 
Who Should Open an IRA?
Who Should Convert Their IRA?

Traditional IRA     

  • Households who expect to be in a lower tax bracket in retirement.
  • Households who need the tax deduction.

  • Households who are within five years of retirement should not convert.

  • Households who cannot afford to pay taxes to convert from other savings or current earnings should not convert.

Roth IRA

  • Households who expect to be in the same or higher tax bracket in retirement.
  • Households between 18-44 years old.
  • Households who can afford to pay taxes to convert from other savings or current earnings.
  • Households who do not need IRA funds for living in retirement and want to pass funds on to their heirs.

Traditional IRA/Roth IRA Savings Accounts
Start accumulating retirement savings here. Rollover funds from your prior employer's 401K or other retirement plan and preserve your tax deferment.

Traditional IRA/Roth IRA Savings Certificates
When you're ready for a higher return on your Traditional IRA, Roth IRA take advantage of our IRA Savings Certificates. IRA Savings Certificates enable you to lock-in higher dividend rates for a fixed term. We offer the following terms:

Individual Retirement Share Account
Balances
Dividend Rate
APY
$250.00 - 24,999.99
0.14%
0.15%
$25,000 - 99,999.99
0.19%
0.20%
$100,000 - 249,999.99
0.24%
0.25%
$250,000 and over
0.29%
0.30
 
$500.00 - 4,999.99
Rate
APY*
12 Month Certificate
0.24%
0.25%
24 Month Certificate
0.34%
0.35%
36 Month Certificate
0.74%
0.75%
48 Month Certificate
0.84%
0.85%
60 Month Certificate
1.14%
1.15%
$5,000.00 +
Rate
APY*
12 Month Certificate
0.29%
0.30%
24 Month Certificate
0.74%
0.75%
36 Month Certificate
1.00%
1.01%
48 Month Certificate
1.49%
1.50%
60 Month Certificate
1.74%
1.75%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Traditional IRA

What are the age restrictions for contributions?

  • Owner must be under age 70 ½


What is the contribution limit?

  • $5,500 per year (minus Roth IRA contributions)


What is the deadline for contributions?

  • Tax return deadline for the year


When can earnings be withdrawn tax free?

  • N/A


When does the 10% early withdrawal penalty apply?

  • Before age 59 ½, unless deceased, disabled, taking pre 59 ½ periodic payments, paying qualified medical expenses, health insurance premiums for unemployed, first-home purchase, or educational expenses. IRS levy & qualified reservist distrubutuions


When must distributions begin?

  • Age 70 ½


Roth IRA

What are the age restrictions for contributions?

  • NONE


What are the income limits for contributions?

  • Single filers: under $127,000
  • Married couples filing jointly: under $188,000


What is the contribution limit?

  • $5,500 per year (minus traditional IRA contributions)


What is the deadline for contributions?

  • Tax return deadline for the year


When can earnings be withdrawn tax free?

  • If both 5 year and qualified-reason tests are met


When does the 10% early withdrawal penalty apply?

  • Before age 59 ½, unless deceased, disabled, taking pre 59 ½ periodic payments, paying qualified medical expenses, health insurance premiums for unemployed, first-home purchase, or educational expenses.


Qualified Distributions

  • For a Roth IRA distribution to be qualified (not subject to tax or penalty), two requirements must be met.
  • Five year waiting period AND Age 59 1/2 or older, Death, Disability, First time homebuyer.