IRAs

Read an overview of each IRA option or view our online brochures:

Traditional IRA Roth IRA Coverdell Education IRA

Online Brochures Available for Download (PDF files)

Traditional IRA

Individual Retirement Accounts (IRAs) are special savings plans authorized by the Federal Government to help you accumulate funds for your retirement. Even if you have an employer-sponsored pension or profit-sharing plan available to you, your IRA contributions may be tax deductible. Dividends earned on your IRA are tax-deferred until the time you withdraw the money. SONEPCO offers two types of traditional IRA accounts: an IRA savings account or an IRA Certificate of Deposit. The IRA savings can receive regular contributions - contributions can even be set up as a payroll deduction or automatic transfer. The IRA Certificate of Deposit is for a fixed term of 6 months up to five years and cannot receive contributions during the term of the certificate. SONEPCO penalties apply to funds withdrawn early from an IRA Certificate. Additional penalties may apply if funds are withdrawn early from either the IRA savings account or the IRA Certificate. You should consult a tax advisor regarding tax and penalty implications.

Product Features:

$100 minimum deposit to open an IRA savings. $1,000 minimum deposit required for a an IRA Certificate of Deposit.
Minimum term is 6 months; maximum term is 5 yrs for an IRA Certificate.
No minimum or maximum term for an IRA Savings account.
No monthly fee, however, penalties for early withdrawal do apply.
Rates are paid on the average daily balance for the IRA Savings account at a higher rate than a Regular Share account. IRA Certificates rates are paid the same as a regular Certificate of Deposit.
No set-up fees.
Early withdrawal penalties apply.
An early closure/withdrawal fee may apply - withdrawals may be subject to tax penalties imposed by the IRS.
Earnings and contributions may be tax deductible.
Certain withdrawal reasons are penalty-free (i.e. first time home purchase, age 59).
Required to start making withdrawals at age 70.
Insured up to $250,000 by NCUSIF.

Roth IRA

The Roth IRA is a non-deductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. You cannot take a tax deduction for any of the contributions you make to a Roth IRA. After five years, you may take disbursements from your Roth IRA and pay no taxes if the reason qualifies. To be eligible for the Roth IRA you must have earned income and your modified adjusted gross income cannot exceed certain limits. A 10% IRA penalty will be assessed for premature distribution. You should see a tax advisor regarding tax implications.

Product Features:

$100 minimum deposit to open an IRA savings and $1,000 minimum to open an IRA Certificate.
Minimum term is 6 months and maximum term is 5 years for an IRA Certificate.
No minimum or maximum term for an IRA Savings account.
No monthly fee, however, penalties for early withdrawal do apply.
Rates are paid on the average daily balance for the IRA Savings account a higher rate than Regular Shares. IRA Certificates rates are paid the same as a regular Certificate of Deposit.
No set-up fees.
Contributions are not tax deductible.
An early closure/withdrawal fee may apply - withdrawals may be subject to tax penalties imposed by the IRS.
Early withdrawal penalties apply if withdrawn before five years or if the reason for the withdrawal does not qualify.
Withdrawals are tax free after the money has been in the account for at least 5 years. Member must be 59, qualify for 1st time home purchase, death or disability.
Not required to start withdrawing funds at age 70.
Insured up to $250,000 by NCUSIF.

Coverdell Education IRA

The Education IRA has different goals than other IRA types; it is not a tool for retirement savings. This IRA encourages an affordable, easy-to-manage, regular savings program for children's education. The earnings are tax free if used for qualified expenses and taxable to the designated beneficiary (not the parent or contributor) if they are withdrawn for another purpose.

Product Features:

$100 minimum deposit to open an IRA savings.
$1,000 minimum deposit is required for an IRA Certificate.
Minimum term is 6 months and maximum term is 5 years for an IRA Certificate.
No minimum or maximum term for an IRA Savings account.
No monthly fee, however, penalties for early withdrawal do apply.
Rates are paid on the average daily balance for the IRA Savings account at a higher rate than Regular Shares and IRA Certificates rates are paid the same as a regular Certificate of Deposit.
No set-up fees.
Anyone can open or deposit for any child.
Contributions are not tax deductible.
Earnings are tax deferred
Withdrawals can be made for any educational expense.
Beneficiary has until 30th birthday to decide if they will attend college.
Unused funds can be rolled over into another Educational IRA for another family member.
Early withdrawal penalties apply if withdrawn before five years or if the reason for the withdrawal does not qualify.
Insured up to $250,000 by NCUSIF.

Click one of the following images to download the online brochure (PDF file):