IRAs

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Individual Retirement Accounts (IRAs) are savings plans authorized by the Federal Government, with favorable tax arrangements to help you build a personalized retirement fund. We also offer education-focused savings accounts, and employee pension assistance accounts.

On March 27, 2020, provisions to the CARES Act included waivers for 2020 Required Minimum Distributions (RMDs). Anyone with a RMD due in 2020 from a company plan (like your 401(k) or 403(b) plan, or an IRA) qualifies, including beneficiaries, and including those who turned age 70 1/2 in 2019 that had to take their first RMD by April 1, 2020. We’re here to help members with rollovers from an employer sponsored Retirement Plan or Trustee Transfers from IRAs a member may have at another financial institution or brokerage firm.

Please contact us to help get you started.

On March 25, 2020, the IRS extended the deadline for 2019 tax filing and Individual Retirement Accounts (IRAs) contributions for the tax year 2019. The new deadline is July 15, 2020.

Please click here to learn more.

On December 20, 2019, Congress passed The Secure Act which resulted in several changes to Individual Retirement Accounts (IRAs).

Please click here to learn more.

Compare your IRA options

Best for members who:

Best for members who:
Employment status

Employment status
Contribution limits

Contribution limits
Tax deductible contributions

Tax deductible contributions
Tax on withdrawals

Tax on withdrawals
Open an IRA

Traditional IRA

Best for members who:

Want to save for retirement and pay taxes on your earnings until withdrawal
Employment status

Must be employed
Contribution limits

$6,000 per year (under 50)

$7,000 (over 50)
Tax deductible contributions

Depends on income
Tax on withdrawals

Taxable as income, and may be subject to a 10% early withdrawal penalty
Open an IRA

Roth IRA

Best for members who:

Want to save for retirement and pay contributions based on after-tax earnings
Employment status

Must be employed
Contribution limits

$6,000 per year (under 50)

$7,000 (over 50)
Tax deductible contributions

Not tax deductible
Tax on withdrawals

Tax free if 59½ or older, or meet exception requirements
Open an IRA

Coverdell Education Savings Account

Best for members who:

Want to save for education
Employment status

N/A
Contribution limits

$2,000 per year per child (<18)
Tax deductible contributions

Not tax deductible
Tax on withdrawals

Tax free if used to pay for qualified education expenses
Open an IRA

Simplified Employee Pension

Best for members who:

Are self-employed or work for someone who is
Employment status

Self-employed or work for someone who is
Contribution limits

limited to the lesser of $57,000 or 25% of compensation
Tax deductible contributions

Only for the employer
Tax on withdrawals

N/A
Open an IRA

Open an IRA

Traditional IRA

When you contribute to a Traditional IRA, you won’t pay taxes on earnings until you start making withdrawals. When you open a Traditional IRA, you may get immediate tax benefits.

Must be employed to contribute to an IRA
There is no maximum age for tax year 2020 contributions and beyond
Maximum contribution for tax year 2020 for individuals under age 50 is $6,000.00. For individuals age 50 and older (no maximum age limit) the maximum contribution is $7,000.00 ($6,000.00 plus $1,000.00 catch up)
Contributions may be tax deductible depending on income and if participant is in a workplace retirement plan
Earnings grow tax deferred
Withdrawals are taxable as “income” and may be subject to a 10% early withdrawal penalty by the IRS if withdrawn prior to attaining age 59½
Required Minimum Distribution for those who reached age 70½ during or after 2020 will be required by April 1st following the year the IRA owner turns 72

Roth IRA

Roth IRAs are similar to Traditional IRAs except that contributions are made from your after-tax earnings.

Must be employed to contribute to an IRA
Maximum contribution for tax year 2020 for individuals under age 50 is $6000.00 For individuals age 50 and over, the maximum contribution is $7000.00 ($6000.00 plus $1000.00 catch up)
Contributions are not tax deductible
Earnings grow tax deferred and may be tax free upon withdrawal if eligibility requirements are met
No required distributions
Funds must remain in a Roth IRA for five years; participants must be age 59½ or older or meet exception requirements for withdrawal to be tax free

CESA

Coverdell Education Savings Accounts (CESA) were created to help parents and students save for anticipated education expenses.

Does not require earned income to contribute; however, if the individual contributing to the Coverdell IRA does have earned income, it must be within IRS Guidelines (refer to IRS Pub.590)
Maximum contribution per child (age 18 or younger) per tax year is $2,000.00
Contributions are not tax deductible
Withdrawals are tax free if used to pay for qualified education expenses
All funds in a Coverdell ESA must be distributed to the designated beneficiary by 30 days after attaining age 30
Jeanne D’Arc Credit Union offers IRA Statement Savings Accounts, IRA Money Market Savings Accounts or IRA Certificates of Deposit for your retirement savings

SEP

A Simplified Employee Pension (SEP) IRA is established by an employer for employees and can be a significant source of retirement income.

Must be self-employed or work for someone who is
Employer must make contributions for all eligible employees
Union employees, non-resident aliens or employees who received $600.00 or less in compensation during the year may be excluded from eligibility
The same percentage of compensation must be contributed for all eligible employees
Contributions are limited to 25% of compensation with a maximum of $57,000 for tax year 2020, and $58,000 for tax year 2021
Contributions to a SEP IRA are made only by the employer and are a tax deduction only for the employer
Contributions can be made up to the employer’s tax filing deadline, up to October 15 with a tax filing extension
Each employee is always 100% vested in all contributions made to his or her SEP IRA

Transfers & Rollovers

There are two ways to move your IRA funds.

A Trustee Transfer which is done between financial institutions, with the paperwork being initiated by the receiving financial institution. This is not a reportable transaction to the IRS.
A Rollover is initiated when an individual makes a withdrawal by check from one IRA and deposits the funds into another IRA elsewhere within the 60 calendar day time limit. The IRS imposes a restriction of one rollover per individual per 365 days. This is a reportable transaction to the IRS and must be indicated on your tax return for the year in which the Rollover is processed. We can assist you with these transactions.

The best way to move funds from a former employer-sponsored retirement plan (i.e., 401(k), Profit Sharing, 457 Plan, etc.) to an IRA is by a Direct Rollover. A Direct Rollover is the direct payment of your vested interest in an employer-sponsored retirement plan to an IRA Trustee or Custodian for your benefit. You must initiate the rollover through the company that is handling your retirement plan. We can assist you in completing any documentation that is required by your former employer to initiate the process. Upon payout, you will receive a check from the employer plan manager that is made payable to “Jeanne D’Arc Credit Union FBO (for the benefit of) your name”. The check may either be mailed directly to Jeanne D’Arc Credit Union or to you. If the check is mailed to you, it is your responsibility to make sure the check is deposited into your Jeanne D’Arc IRA account.