Service an Existing IRA
Service an Existing IRA
Retirement Savings Options - Individual Retirement Accounts (IRAs)
Individual Retirement Accounts (IRAs) are accounts set up to use during retirement that have certain tax advantages. Choose from a Traditional or Roth IRA to help save for your future. Or, take advantage of our account building options including IRA Savings and Certificate accounts, and Investment Services to help you build your savings.
Traditional IRAs
Traditional IRAs1 are potentially tax-deferred retirement plans; you don't pay taxes on your contributions until you withdraw the funds. Contributions can be made as long as you have earned income and you're below the age of 70 and a half.
Features:
- Individuals may open and fund IRAs without any employer participation
- Earnings potentially remain tax-deferred until distributed
- Eligible individuals can make deductible contributions
- Individuals may distribute IRA assets at any time
- No annual contribution requirement
Roth IRA
Roth IRAs tax contributions are not tax-deductible, but you can withdraw the funds tax-free when you retire. Contributions can be made after the age of 70 and a half as long as you have earned income.
Features:
- Individuals may open and fund a Roth IRA without any employer participation
- No age limit on making contributions
- Earnings remain tax-deferred until distributed
- Allows contributions to grow tax-deferred
- The principal amount is never subject to future taxes or penalties as long as owners remain within the contribution guidelines
- No annual contribution requirement
Account Options
IRA Savings Account
We offer a savings rate higher than our regular savings rate for members who want to have access to their money. Choose from Traditional or Roth options.
Federally insured by NCUA
IRA Certificates
For a predictable return on investment, we offer IRA Certificates with terms ranging from 12-60 months. Open for as little as $500 and enjoy the benefits of a Share Certificate with tax advantages. Choose from Traditional or Roth options.
Federally insured by NCUA
Investment Services
Other non-deposit investment options2 may be available to you through our investment services advisors.
Not NCUA Insured - No Credit Union Guarantees - May Lose Value - Not a Deposit - Not Insured by any Government Agency
IRA Rates
| Products | APY* |
|---|---|
| IRA Share | 0.50% |
| Products | 12 Months APY* | 24 Months APY* | 30 Months APY* |
|---|---|---|---|
|
IRA Certificate** (Minimum Balances of $500) |
5.20% | 4.63% | N/A |
| Products | 36 Months APY* | 48 Months APY* | 60 Months APY* |
|---|---|---|---|
|
IRA Certificate** (Minimum Balances of $500) |
4.37% | 4.37% | 4.37% |
Rates effective February 1, 2024
* Annual Percentage Yield (APY). 12-month and longer Certificate dividends are compounded and credited quarterly, on the last day of the quarter and at maturity. For example, dividends for the first quarter, January 1 to March 31, will be paid on March 31. Penalties may apply for early withdrawals. Rates subject to change.
**In the case of early withdrawals of the principal amount or any portion thereof, a penalty will be imposed. SDFCU reserves the right to require 24 hours written notice of your intent to withdraw. Penalties are assessed at the time of withdrawal and are calculated as follows: Less than 12-month Certificates - You will forfeit the lesser of 30 days of dividends on the amount withdrawn or the amount of dividends earned since the date of issuance. 12-Month - 48-Month Certificates - You will forfeit the lesser of 180 days of dividends on the amount withdrawn or the amount of dividends earned since the date of issuance. 60-Month Certificates - You will forfeit the lesser of 360 days of dividends on the amount withdrawn or the amount of dividends earned since the date of issuance. No penalty will be imposed if the withdrawal is a result of voluntary or involuntary liquidation of the Credit Union or upon death of the member.
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Disclosures
1 Features and deposits are based on your personal tax situation, contact your tax or legal professional or the IRS for specific tax information about state or local income taxes. This is intended to provide general information pertaining to Traditional and Roth IRAs. It is not meant to provide legal advice or individual tax recommendations. IRA contribution limits are determined by the IRS and apply to any financial institution. Visit our IRA Service Center to get more IRA information.
2 Securities offered through Securities America, Inc., a Registered Broker/Dealer, Member FINRA/SIPC, Walter Billodeaux and Momodou Bojang, Registered Representatives. Advisory services offered through USAdvisors Wealth Management, LLC., Walter Billodeaux, Investment Advisor Representative. State Department Federal Credit Union, State Department Federal Credit Union Financial Services, USAdvisors Wealth Management, LLC. and Securities America are unaffiliated.
Not NCUA Insured - No Credit Union Guarantees - May Lose Value - Not a Deposit - Not Insured by any Government Agency