Earn now, pay later. Contributions grow on a tax-deferred basis while you earn dividends like a certificate with fixed terms of 6-month to 10 years.
- Open with $500 minimum deposit
- Contributions may be tax deductible
- Earnings are tax-deferred
- Up to 4.50% APY with dividends paid monthly
- Automatic renewal at maturity
- No age limit on contributions for individuals who have earned income and are eligible
- Penalty-free early withdrawal options for first-time home purchase or college expenses
- Funds federally insured up to $250,000
Note: Withdrawals in retirement are taxed at ordinary income tax rates. For other options, explore certificate and IRAs.
Benefits for Today and Tomorrow
As with any IRA, the Credit Human Share Certificate IRA provides tax advantages on contributions that help you save for retirement. Anyone with earned income can open and make contributions to a Share Certificate IRA. Contributions may be tax deductible on both state and federal tax returns for the year in which you make the contribution. Contributions may lower your taxable income in the contribution year, which may help you qualify for other tax incentives.
Note: Deposits to an IRA are limited by Federal Regulations. Consult your tax advisor regarding your personal tax situation. Check the current contribution limits in place each year you contribute to your Traditional IRA.
Opening a Traditional IRA Certificate is also a contract between Credit Human and a member. It gives you an alternative way to invest retirement funds for a specific period of time in order to earn higher dividends and a better annual percentage yield (APY). Open your Credit Human Traditional IRA Certificate with an initial purchase amount that works for you. Earn monthly dividends and an annual percentage yield (APY) over a term as short as three months or as long as ten years — or choose a fixed term of just one year. Dividends and APY are paid monthly at a rate corresponding to your purchase amount and term. Account holders must have earned income or alimony in order to open and make annual contributions to a Traditional IRA Certificate, and this account may not be used as collateral for any type of loan.
Note: The dividend rate and corresponding annual percentage rate (APY) for the contract period will be determined based on the purchase amount and the contract term. If choosing a fixed, one-year term, dividend rate will not change during the term. Dividends are paid monthly and calculated using the daily balance method. A penalty will be imposed for early withdrawal, including substantial penalties on tax-deferred instruments. Fees could reduce earnings.
Options for Withdrawal
With a Traditional IRA, when you turn 72, you must begin taking required minimum distributions (RDMs)(Note: Until the end of 2019, 70½ was the age when minimum distributions were required to start). These withdrawals are taxed at ordinary income tax rates at the time of withdrawal. Early withdrawals are subject to penalty. Up to $10,000 may be withdrawn without the normal early withdrawal penalty to pay for qualified first-time home buyer or college expenses. At age 59 1/2, additional qualified early distributions may be allowed.
Note: Substantial penalties for early withdrawal will apply except for those specifically permitted under IRS Regulations. If you wish to make a withdrawal, check to determine whether you may do so penalty-free, or if you will face an early withdrawal penalty.
Get Help from Credit Human
Opening your IRA is easy — we’re here to help. The type of individual retirement account you choose can significantly affect your long-term savings. Be sure to understand your IRA options to choose the best one for you. For help in understanding your options, or to open an IRA, call our Member Service Center at (210) 258-1234 or toll free at 1-800-688-7228.
Your Insured Funds
Credit Human IRAs are insured separately up to $250,000 by the National Credit Union Administration (NCUA), a U.S. Government Agency. Similar to deposit insurance coverage offered by the FDIC for banks, the NCUA operates the National Credit Union Share Insurance Fund (NCUSIF) to protect accounts at federally insured credit unions.
More Details: Account type and ownership factor into coverage amounts. Read up on NCUA Share Insurance (PDF) to maximize your coverage, estimate your coverage online, or call our Member Service Center at 210-258-1234 or toll free at 800-688-7228 for further information on your insured funds.