Let's get your questions answered and your savings started.
When it comes to retirement, you may have some questions. How much money will you need? What is the best way to save it? Should you get a Traditional or Roth IRA? Can you open an IRA in addition to a work-based 401(k)? At South Carolina Federal Credit Union, we have the answers you are looking for.
- Contribute up to $7,000 annually to your IRA Savings Account ($7,500 if over age 50).
- Choose Traditional or Roth IRAs that grow at competitive rates.
- With Roth IRAs, qualified withdrawals are tax-free.
- With both Traditional and Roth IRAs, dividends are tax-exempt.
- With Traditional IRAs, you may be able to take a tax deduction for any year you make a contribution.
- Deposits up to $250,000 insured by National Credit Union Administration.
- With $50,000 in your IRA Savings*, you can open a Jumbo IRA Share Certificate.
Coverdell Education Savings Account
These accounts are often called Education IRAs because they feature many of the same tax advantages as Traditional and Roth IRAs. However, rather than retirement, these accounts help you and your family save for education expenses.- Contribute up to $2,000 per year per student.
- Any family member - including parents, grandparents, aunts and uncles - can contribute to a child's ESA.
- Annual dividend earnings are tax-exempt and all qualified withdrawals are tax-free.
- Funds can be used for higher education and private elementary and secondary schools.
- Qualified expenditures include tuition, room and board, fees, and educational equipment such as laptop computers.
| Term | Dividend Rate | Annual Percentage Yield1 |
|---|---|---|
| 3 Months | 0.50% | 0.50% |
| 6 Months | 1.24% | 1.25% |
| 12 Months | 1.49% | 1.50% |
| 18 Months | 1.54% | 1.55% |
| 24 Months | 1.74% | 1.75% |
| 36 Months | 1.99% | 2.00% |
| 36 Months Step-Up | 1.89% | 1.90% |
| 60 Months | 2.48% | 2.50% |
Contributions can be made with a check or transfer from a South Carolina Federal account. Contributions and withdrawals must be accompanied by a written request.
The written request for contributions must include the following information:
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Name
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Debiting Account Number
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Depositing Account Number
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Contribution amount
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Signature
Between Jan. 1st and April 15th (tax deadline) contribution instructions should specify “Previous Year”, otherwise the contribution will apply to the current year.
Direct transfers and allocations are applied to the current year.
The written request for withdrawals must include the following information:
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Name
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Withdrawal Amount
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Specified Federal tax withholding amount (none, 10%, or higher).
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If a withholding amount is not provided, the Credit Union is required to withhold the max 10%.
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IRS penalties, if applicable, will not be withheld; penalties are paid when tax returns are filed.
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Signature
For Direct Transfers or Rollovers, contact the receiving financial institution to initiate the transfer and paperwork; once paperwork is received, we will disburse funds.
IRA contributions and withdrawals can be completed via mail, fax, or in a local financial center.
Transaction limits apply