IRAs can build the foundation for your retirement plan

Just because it isn't hip or trendy doesn't mean it isn't important.

You have a go-to hoodie or shirt for just relaxing and lounging around, right? Sure, everyone does! And while you probably wouldn't describe it as "exciting," it sure is great to have. That's kind of the same thing with IRAs. Though not flashy, IRAs are a fundamental building block for your investment portfolio and your retirement story. We offer a wide variety of IRAs that you can open for as little as $5!

Traditional IRAs

Eligibility. Anyone under age 70 1/2 with earned income is eligible.

Annual Contribution. Your contributions can't exceed $6,000 or 100% of earned income, whichever is less. If you're over 50 years old, you're allowed a "catch-up;" but it can't exceed $7,000.

Tax Benefits. Certain contributions are tax deductible. Interest is tax-deferred.*

Withdrawals. IRS penalty-free Options:

  • For qualified educational expenses
  • For first-time home purchase
  • At or after age 59 1/2
  • If you become disabled
  • For qualified medical expenses
  • For payment of health insurance premiums while unemployed
  • Upon your death
  • Withdrawals prior to age 59 1/2 may result in a 10% IRS penalty tax in addition to current income tax.
Roth IRAs
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Age Eligibility. No maximum age with these. Anyone who has earned income and does not exceed the maximum income limit is eligible.

Income Eligibility. If your MAGI (Modified Adjusted Gross Income) falls within a phase out range below, you will need to calculate how much, if any, you can contribute to a Roth IRA. The phase out ranges for contributions are:

  • Single: $122,000 - $137,000
  • Married (filing joint tax return): $193,000 - $203,000
  • Married (filing separate tax return): $0 - $10,000

Contribution Limits. Total of all IRA contributions (Traditional and Roth combined) cannot exceed $6,000 or 100% of earned income, whichever is less for any tax year. If you are over 50 years old, you are allowed a "catch-up;" but contributions cannot exceed $7,000.

Tax Benefits. Your account grows tax-deferred, and qualified distributions are tax free.*

Withdrawals. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 1/2 or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

IRA Rates

Fixed IRAs
12-Month Term DR:2.00% | APY:2.02%**
18-Month Term DR:2.30% | APY:2.32%
24-Month Term DR:2.10% | APY:2.12%
30-Month Term DR:2.15% | APY:2.17%
36-Month Term DR:2.30% | APY:2.32%
48-Month Term DR:2.35% | APY:2.38%
60-Month Term DR:2.40% | APY:2.43%
72-Month Term DR:2.40% | APY:2.43%

Easy Save IRAs (No Royal Credit Union Penalty on Withdrawals)
Invest $5 or More DR:0.80% | APY:0.80%

Variable Rate IRA (Invest $5 or More)
24-Month Term (Rate Changes Monthly) DR:1.75% | APY:1.76%

The Fine Print
The Fine Print

*Remember, consult a tax professional for the details.

**APY = Annual Percentage Yield. Rates current as of 5/1/2019. Last changed on 5/1/2019. The above rates are subject to change at any time without notice. Dividends calculated daily, compounded and paid monthly. Substantial penalty for early withdrawal. Charges could reduce the earnings on the account. 

View our disclosures and service fees.