Individual Retirement Accounts (IRAs)

An Individual Retirement Account is the solution found by many HFCU members* when they are looking for a long-term personal retirement savings program. Recently, changes in the IRA market have continued to make IRAs more attractive to investors. The annual limit for both traditional and Roth IRA contributions is $7,000.

If you are 50 or older, you can contribute up to an additional $1,000 annually as a “catch-up” contribution. Married couples may be able to contribute up to double the individual IRA maximum. You should consult a tax professional regarding eligibility requirements. Remember, there is a substantial penalty for early withdrawal except in certain circumstances.

HFCU IRAs:

Key Features
Feature a variety of competitive rates and maturity options, even from 6-60 months with IRA Certificates or IRA Savings Accounts.
IRA accounts are insured separately from other Savings Accounts by NCUA up to $250,000.
Contributions may be made until April 15 of each year for the previous year. (Deposits only)
IRAs from other institutions may be transferred or rolled over into an IRA. Plus, funds from a qualified pension, profit-sharing, 401(k), and SEP may be rolled over to an IRA.

Traditional IRAs

Key Features
Available to anyone, as long as the individual has reportable income/earned wages.
Contribution maximum is currently $7,000 per year, or $8,000 per year if you are 50 years of age or older.

Roth IRAs

Key Features
Withdrawals are tax-free if account has been open for at least 5 years and you are either over the age of 59½, disabled, or buying a first home.
Married couples filing a joint return with modified adjusted gross income (MAGI) up to $230,000 and single filers with MAGI up to $146,000 can make full contributions.
Those with higher incomes may qualify for reduced contributions.

Coverdell Education Savings Accounts

Key Features
Couples who file a joint tax return and have MAGI of $220,000 or less and single filers with MAGI of $110,000 or less can make contributions.
Contributions can not exceed $2,000 per child per year.
Withdrawals for qualified education expenses are tax-free.

Rates Below Effective: December 1, 2024 and are Payable January 1, 2025

IRA Share Rates

Amount	Dividend Rate	APY**
$.00 – $99,999.99	1.342%	1.35%
greater than or equal to $100,000	1.834%	1.85%

Share Certificate Rates Below Effective: December 17, 2024 through December 23, 2024

Share Certificate Accounts

Term	Share		IRA & Jumbo
	Dividend Rate	APY**	Dividend Rate	APY**
7 Day up to 91 Day	2.182%	2.200%	N/A	N/A
6 Month to 11 Month	3.357%	3.400%	3.474%	3.520%
12 Month to 17 Month	3.893%	3.950%	4.009%	4.070%
18 Month to 23 Month	3.455%	3.500%	3.572%	3.620%
24 Month to 29 Month	3.455%	3.500%	3.572%	3.620%
30 Month to 35 Month	3.455%	3.500%	3.572%	3.620%
36 Month to 47 Month	3.455%	3.500%	3.572%	3.620%
48 Month to 59 Month	3.455%	3.500%	3.572%	3.620%
60 Month	3.552%	3.600%	3.669%	3.720%

*Must be eligible for Houston Federal Credit Union membership and open a share savings account with a $5 minimum deposit in order to become a member and obtain any product or service.

**APY = Annual Percentage Yield.
Rates are subject to change monthly.
Minimum opening deposit for HFCU Traditional Share IRA, Roth Share IRA and Coverdell Share Account is $5.
Minimum opening deposit for HFCU Traditional Share Certificate IRA, Roth Share Certificate IRA, and Coverdell Share Certificate Account is $500.
Fees and other conditions could reduce the earnings on the account.

Informational Resources:

Traditional and Roth IRAs	Traditional IRAs	Roth IRAs
Transfers, Rollovers, and Conversions	IRA and Retirement Plan Distributions	Coverdell ESAs
Inherited IRAs	Retirement Plans	SEP, SIMPLE IRA, and Individual (k) Plans

These brochures are not intended as tax advice. Consult a tax advisor regarding the deductibility and contribution limits.