IRA Certificates

Our Individual Retirement Account (IRA) certificates are a secure investment vehicle that can increase your savings potential within your retirement portfolio. Traditional IRAs offer a great way to save for the future; Roth IRAs are a great choice for younger people or those who expect to be in a higher tax bracket when they retire; our Education IRAs are perfect for parents who want to start saving for their child(ren)’s education.

Our low minimum balance and flexible terms make it easy for all members to add to their retirement nest egg and we can help you open a new IRA or rollover an existing IRA. Because of the variety of advantages each type of IRA provides, we recommend speaking to one of our Member Service Consultants (call 1-800-371-5162) to learn which type of IRA best serves your needs. We suggest that you seek tax counsel to learn more about tax consequences before opening an IRA Account.

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BENEFITS

Flexible terms

FLEXIBLE TERMS

VSECU certificate terms feature a fixed rate annual percentage yield (APY).

Low minimum deposit

LOW MINIMUM DEPOSIT

The minimum deposit required to open any certificate is only $500

High annual yield

HIGH ANNUAL YIELD

Certificates have a higher APY than regular savings for long-term investments.

Ncua insured

NCUA INSURED

Each certificate is insured by the NCUA for up to $250,000 aggregate per member.


Traditional IRA

When it comes to planning for your retirement, your mantra should be “save early, save often.” A Traditional Individual Retirement Account is a savings plan where contributions may be tax-deductible and interest earnings are tax-deferred. Not only do you get the benefit of saving with a great interest rate on a term certificate, but you may also be able to reduce the amount of money you owe in income taxes when you make a contribution.

FEATURES

Tax deductible

TAX OPTIONS

Contributions you make to Traditional IRAs offered by VSECU may be tax deductible.

Tax deferred earnings

TAX DEFERRED EARNINGS

Taxes on Traditional IRA earnings may be deferred until retirement.

Multiple account types

ACCOUNT TYPES

You can start with a brand new Traditional IRA or rollover an existing investment into an IRA.

All future withdrawals are treated as taxable income. At VSECU we want to help all Vermonters ensure their financial stability in retirement.

RATES

Account Type Minimum Daily Balance to Earn APY Minimum Balance to Open Account APY
IRA Savings None $25 0.10%
1 Year Certificate $500 $500 .30%
2 Year Certificate $500 $500 .50%
3 Year Certificate $500 $500 .75%
4 Year Certificate $500 $500 1.00%
5 Year Certificate $500 $500 1.25%

APYs effective as of 11/7/2016 and may change at maturity. Fees could reduce earnings. Early withdrawal penalties may apply. Seek legal counsel to learn more about tax consequences for IRA certificates.



Roth IRA

A Roth IRA allows you to make non-tax deductible contributions to a retirement account. Earnings and withdrawals from these accounts are generally tax free. A Roth IRA is a good choice if you are younger or expect to be in a higher tax bracket when you retire.

FEATURES

Tax deductible

TAX DEDUCTIBLE

Contributions you make to Roth IRAs offered by VSECU may be tax free.

Early Distributions

MAKE EARLY DISTRIBUTIONS

Early qualified distributions from your VSECU Roth IRA are allowed.

No Minimum Distribution

NO MINIMUM DISTRIBUTION

Minimum distributions are not required when you reach retirement age.

An advantage of our Roth IRA is that you are not required by law to take distributions after you reach the age of 70 1/2. If you are earning wages beyond this age, you can continue to make contributions to the account.

RATES

Account Type Minimum Daily Balance to Earn APY Minimum Balance to Open Account APY
IRA Savings None $25 0.10%
1 Year Certificate $500 $500 .30%
2 Year Certificate $500 $500 .50%
3 Year Certificate $500 $500 .75%
4 Year Certificate $500 $500 1.00%
5 Year Certificate $500 $500 1.25%

APYs effective as of 11/7/2016 and may change at maturity. Fees could reduce earnings. Early withdrawal penalties may apply. Seek legal counsel to learn more about tax consequences for IRA certificates.



Education IRA

VSECU offers an investment program specifically for Vermont parents looking to help fund their child’s future education. Our Education IRA can help you put away money a little at a time to help cover the cost of higher education.

FEATURES

Tax Free Withdrawals

TAX FREE WITHDRAWALS

Qualified withdrawals made from Education IRAs are not subject to taxes.

Edu gift

GREAT GIFT

An Education IRA works as a great gift for children or grandchildren.

$2K Annual Limit

$2K ANNUAL LIMIT

Up to $2,000 per beneficiary can be contributed to the Education IRA per year for children under age 18.

Although most of us recognize the term “Education IRA,” the accurate new name for this type of savings is a Coverdell Education Savings Account. This is a type of IRA that enables people to save for educational expenses from grade school through college.

RATES

Account Type Minimum Daily Balance to Earn APY Minimum Balance to Open Account APY
IRA Savings None $25 0.10%
1 Year Certificate $500 $500 .30%
2 Year Certificate $500 $500 .50%
3 Year Certificate $500 $500 .75%
4 Year Certificate $500 $500 1.00%
5 Year Certificate $500 $500 1.25%

APYs effective as of 11/7/2016 and may change at maturity. Fees could reduce earnings. Early withdrawal penalties may apply. Seek legal counsel to learn more about tax consequences for IRA certificates.



Find your branch

Because of the variety of advantages each type of IRA provides, we recommend visiting your local branch, and speaking with a Member Service Consultant to learn which type of IRA best serves your needs.

VSECU can also connect you with a professional brokerage service located at VSECU branches. , provided through CUNA Brokerage Services Inc., allows you to explore a wide range of investment options and growth opportunities for your portfolio that may not be federally insured.

Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members.


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