Individual Retirement Accounts

Planning for your financial security. At The Southern Credit Union, we want you to keep more of what you earn.

Rates & Fees

Traditional IRA

A Traditional IRA may allow individuals with earned income to make pre-tax contributions and the investments in the account grow tax-deferred.

Good for:

  • Individuals interested in tax-deferred retirement savings.

Features: 

  • Contributions may be tax deductible in the year they are made.
  • Make a contribution of up to $7,000 per year, which may be tax-deductible (consult with your tax advisor).
  • Withdrawals from your IRA may be penalty-free for certain qualified higher education expenses, first-time home purchase, at the age of 59 1/2, or for qualified medical expenses. 

Roth IRA

A Roth IRA generally allows individuals with earned income to make taxable contributions with future qualified withdrawals tax-free. (Consult your tax advisor for qualifications.)

Features:

  • Make a contribution of up to $7,000 per year (consult your tax advisor).
  • Can make a contribution after the age of 70 1/2.
  • Distributions are generally tax-free.
  • Distributions of earnings may also be tax-free and penalty-free if certain qualification have been met.
  • No mandatory distribution is required once you reach the age of 70 1/2

You need to be a member of The Southern to open an IRA, not a member?

See if you are eligible to join!

Traditional and ROTH IRA Term Share Certificates of Deposit

Structuring your IRA as a share certificate of deposit (CD) will earn a higher rate of return than a Traditional IRA Account.

Features:

  • Minimum deposit amount is $500.
  • Terms are available from 1-year to 5-years.
  • Dividends are compounded quarterly and paid quarterly.

The IRA account descriptions on this page is for informational purposes only, and should not be construed as legal or income tax related advice. For specific information regarding the income tax related consequences of the IRA accounts described on this page, please contact a competent legal or tax professional.

Why the Southern?

Building financial success one member at a time.

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Financial Calculators

We offer a suite of online calculators to help you take the next step.

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IRA FAQs

We've compiled a list of IRA frequently asked questions to help you

What do I need to do to establish an IRA at The Southern?

To establish an IRA, you must complete an application and return it to us with your initial contribution, transfer or rollover instructions (whichever applies). Applications may be obtained by contacting our Telephone Service Center at 770.719.1111 or 800.338.5882 or visiting any of our branch locations.

Can I rollover my 401(k) to a Roth IRA at The Southern?

After-tax contributions to a 401(k), as well as funds in a Roth 401(k), can be rolled over to a Roth IRA. Due to the possible tax consequences, if you would like to rollover 401(k) pre-tax contributions to a Roth IRA, we recommend that you consult a qualified tax professional.

I am retiring. Can I rollover my 401(k) to an IRA?

Yes, you can. If you would like an IRA Savings (no investment options) or an IRA CD, contact a Telephone Service Representative for further instructions and to request forms needed to complete the rollover.

When can I access the funds in my Traditional IRA?

Funds in a Traditional IRA can be accessed any time after you reach the age of 59 1/2 without penalty. Prior to age 59 1/2, distributions are subject to a 10% penalty by the IRS unless exempt because of one of the following reasons:

  • Disability or death
  • Qualifying medical expenses
  • Qualifying educational expenses
  • Unemployment, under certain conditions
  • Qualified first time home purchase
  • IRS Levy

When can I access the funds in my Roth IRA?

Distributions from a Roth IRA can be taken at any time. In order for withdrawals to be tax-free, the Roth IRA must be open for five years and you must meet one of the following criteria:

  • Made on or after the date you reach 59 1/2 years of age
  • Made because you are disabled
  • Made to a beneficiary or to your estate after your death
  • Withdrawals that meets the requirements of a first home purchase

What happens to my Traditional/Roth IRA if I die?

In the event of your death, direct distribution of a Traditional or Roth IRA is made to your specified beneficiaries and generally not subject to probate. If the primary beneficiary is your spouse, he/she has the option of assuming ownership of your Traditional or Roth IRA.

What is the minimum amount required to open an Traditional or Roth IRA?

There is no minimum amount required.

What is the minimum amount required to open a Traditional IRA or ROTH IRA Share Certificate of Deposit?

Minimum deposit for either is $500.00.