Enjoy the tax advantages of opening a Provident Traditional or Roth IRA (Individual Retirement Account), Coverdell ESA (Educational Savings Account), or Health Savings Account (HSA) this tax season, or contribute to your existing Provident IRA, ESA, or HSA. Provident has great rates, and because Provident Credit Union IRAs are federally insured, you are guaranteed a risk-free investment.
Provident offers three types of accounts that can be used for IRA or IRA-like accounts (such as ESAs or HSAs).
Click below for the type of account you are interested in. For a complete listing of the yields on these accounts, click on the Rates link at left.
Term share certificates are the credit union industry's versions of certificates of deposit (CDs). They are purchased for set periods of time. Tiered rates are available on most of our certificates, giving you the ability to earn higher rates based on the current balance of your certificate.
Fixed Rate 12-60 month IRA/ESA Certificates
With a variety of terms and rates to choose from, you can start your risk-free retirement or educational savings now with a $500 minimum. When the term is up, you can roll it over into a different IRA/ESA account, or just let it automatically renew at the rate that is current at the time.
Variable Rate IRA/ESA Certificate
Take advantage of good market conditions with this variable rate 36-month term certificate with a $500 minimum. Earnings are tax-free if the account is open for five tax years and withdrawn for a qualified reason.
"Add-On" IRA/ESA Certificate
Add deposits of any amount — anytime! There's only a $250 initial minimum deposit for this 24-month term certificate. This fixed rate account is a great gift idea, and a smart way to save with automatic payroll deduction. Deposits that raise the balance into the next tier will increase the rate, allowing your money to grow even faster.
"Bump-Up" IRA/ESA Certificate
Doesn't it irk you when rates rise and you're stuck at a lower level? This great savings certificate solves that problem because you can step up to a higher rate. If we advertise a higher rate for this IRA/ESA certificate, you can request whatever rate is current, one time, any time during the term of the certificate, and we'll apply it to the remaining term. Just let us know. This 24-month IRA/ESA Savings Certificate has a $500 minimum.
If you're opening an IRA or ESA for the first time you can begin with as little as $25 to open an IRA/ESA Share Savings Account. With this account, you can make contributions of any amount, any time throughout the year. This is our most liquid IRA/ESA, and a great way to start if you don't yet have enough for the minimum balance of a certificate.
Health Savings Accounts (HSAs) are sometimes referred to as "Medical IRAs". An HSA is a tax-deductible savings account that can be used to pay for a wide variety of health expenses. For many consumers, the benefits of the tax deduction make HSAs the smart approach to health insurance.
Provident's HSA works like a checking account and earns dividends. Funds for immediate medical expenses are accessed with a debit card.
Government rules determine whether you are eligible and how you operate your account. You must be covered by a high deductible health plan (HDHP) that is HSA compatible and not enrolled in Medicare in addition to other requirements. Unlike Flexible Spending Accounts, your HSA has no "use it or lose it" requirement and also stays with you if you change jobs or retire.
Health Savings Add-On Certificate
This account is available to Health Savings Account (HSA) holders. It requires a low $250 initial minimum deposit. With an HSA certificate, you have the option to choose either a 12 or 24 month term and can make contributions up to your HSA plan limits. This high rate certificate also has an add-on feature which gives you the ability to make deposits at anytime! For an even smarter way to save, you can even select automatic payroll deduction. Deposits that raise the balance into the next tier will increase the rate, allowing your money to grow even faster.
Not sure how IRAs and other investments fit your situation? Provident's Financial Consultants* will help you look at your financial goals and investment options mutual funds, annuities, stocks, IRAs, Term Share Certificates, etc. Learn More about their wide range of services for Provident Credit Union members. Or check out one of CUE's upcoming Financial Seminars.
*Financial Consultants are employees of Provident Credit Union, and are registered representatives of Securities America, Inc., member FINRA & SIPC.
The Benefits of Saving Now
Contributing to an IRA, ESA, or HSA can not only help you save for retirement, education, or health expenses, but could also potentially provide you with tax benefits (check with your tax advisor).
It doesn't take much to retire with a large sum of money! If you saved as little as a $100 a month to put into your IRA, look at how it would accumulate at a dividend rate of 2.433% (without the compounding interest, the same contributions would only equal $36,000 after 30 years):
|Year 10||Year 20||Year 30|
Numbers rounded to nearest dollar. Rate based on the current dividend rate for the Fixed Rate IRA Add-On Certificate. This does not, however, constitute a guarantee of results for any Provident Credit Union deposit product. Rates are subject to change, and do not typically remain the same for 10, 20, or 30 years.
Wondering which IRA is right for you?
Consult our Comparison Chart (PDF).
Make an IRA contribution. Add money to an existing account for any of the following reasons:
- Regular Contribution: Make a contribution to an existing account up to your annual contribution limit.
- Direct Transfer: Move assets from one IRA account to another.
- Rollover: Roll over assets from an IRA or an employer-sponsored retirement plan.
|Year||Under Age 50||Over Age 50|
You can make 2016 IRA contributions until April 18, 2017.
Make an IRA Withdrawal:
Withdraw money from an existing account for any of the following reasons:
- Make a normal withdrawal from an existing account
- Move money through a rollover or direct transfer
- Withdraw a previous contribution
- Withdraw if you are disabled
- Settle a federal tax levy
- Cancel a new IRA within 7 days of opening it
Naming a beneficiary is highly recommended. Without naming a beneficiary, you run the risk of having your IRA assets paid to your estate and subject to probate. Refer to your IRA plan agreement to verify how your IRA assets will be distributed.
Apply to open a new IRA, ESA, or HSA account.