Individual Retirement Accounts
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IRAs 101
An IRA, short for Individual Retirement Account, is a high-earning, long-term commitment investment and savings account with the purpose of helping you save (and save good) for retirement. IRAs earn higher dividends than a typical savings account. They also offer you a way to independently build your own nest egg, whether you have an employer funded 401(k) or not. All you need to open your own IRA is proof of income, plus a minimum of $100 - $500 to fund the account and you’re in.
Let’s make this easy.
We make saving for retirement simple. We can help you create a custom IRA solution that’s all yours — all you have to do is point us in the right direction.
Smart Start and Variable Rate IRA Certificate Rates
| Type | Smart Start IRA Certificate | 12 Month |
| Dividend Rate | 3.989% |
| APY* | 4.05% |
| Balances | $100.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Variable Rate IRA Certificate | 18 Months |
| Dividend Rate | 3.552% |
| APY* | 3.60% |
| Balances | $500.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
*APY = Annual Percentage Yield. APY is accurate as of November 8, 2024. Smart Start IRA Certificate - Additional deposits allowed during the term, $5 minimum. Variable Rate IRA Certificate - Additional deposits allowed, $5 minimum. Dividend rate & APY are subject to change during the term. Early Withdrawal Penalty Fees could reduce earnings. Penalties will/may be imposed for early withdrawal on time accounts. Fees may reduce earnings on the account. Rate may change after account opening. Rate is accurate as of November 8, 2024.
Fixed Rate IRA Certificate Rates
| Type | Fixed Rate IRA Certificate | 12 Month |
| Dividend Rate | 4.088% |
| APY* | 4.15% |
| Balances | $500.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Fixed Rate IRA Certificate | 18 Month |
| Dividend Rate | 3.650% |
| APY* | 3.70% |
| Balances | $500.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Fixed Rate IRA Certificate | 24 Month |
| Dividend Rate | 3.601% |
| APY* | 3.65% |
| Balances | $500.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Fixed Rate IRA Certificate | 36 Month |
| Dividend Rate | 3.259% |
| APY* | 3.30% |
| Balances | $500.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Fixed Rate IRA Certificate | 48 Month |
| Dividend Rate | 3.211% |
| APY* | 3.25% |
| Balances | $500.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Fixed Rate IRA Certificate | 60 Month |
| Dividend Rate | 3.211% |
| APY* | 3.25% |
| Balances | $500.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
*APY = Annual Percentage Yield. APY is accurate as of November 8, 2024. No deposits allowed except at maturity or during the grace period. Early Withdrawal Penalty Fees could reduce earnings. Penalties will/may be imposed for early withdrawal on time accounts. Fees may reduce earnings on the account. Rate is accurate as of November 8, 2024.
Cumulative IRA Share Rates
| Type | Cumulative IRA Share | $5.00 - $9,999.99 |
| Dividend Rate | 0.100% |
| APY* | 0.10% |
| Balances | $5.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Cumulative IRA Share | $10,000.00 - $24,999.99 |
| Dividend Rate | 0.150% |
| APY* | 0.15% |
| Balances | $10,000.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Cumulative IRA Share | $25,000.00 - $49,999.99 |
| Dividend Rate | 0.150% |
| APY* | 0.15% |
| Balances | $25,000.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Cumulative IRA Share | $50,000.00 - $74,999.99 |
| Dividend Rate | 0.200% |
| APY* | 0.20% |
| Balances | $50,000.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Cumulative IRA Share | $75,000.00 - $99,999.99 |
| Dividend Rate | 0.200% |
| APY* | 0.20% |
| Balances | $75,000.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
| Type | Cumulative IRA Share | $100,000.00 + |
| Dividend Rate | 0.200% |
| APY* | 0.20% |
| Balances | $100,000.00 Minimum Balance to Earn Stated APY |
| Dividends Compounded | Quarterly |
*APY = Annual Percentage Yield. APY is accurate as of July 15, 2022. The Cumulative IRA is a tiered account. Dividend rates for a particular tier, as disclosed above, will apply to the entire account balance once the minimum daily balance reaches the balance range for that tier. Early Withdrawal Penalty Fees could reduce earnings. Penalties will/may be imposed for early withdrawal on time accounts. Fees may reduce earnings on the account. Rate may change after account opening. Rate is accurate as of April 4, 2024.
Which option is right for you?
You’ve given your future some thought — nice work.
Long-term commitment is a must.
Once your term is set, whether it’s one year or five years, withdrawing any money from the account before that period ends will result in a fee equal to a 90-day dividend. Just remember: your patience will pay off. Literally.
Taxes are involved.
No matter which type of IRA you open, you’ll be paying taxes on your contributions, be it now or down the road. Again, if you make any withdrawals before your set term limit, the IRS will take 10% of your funds, plus the withdrawal amount is also taxable. Members should consult a tax advisor for additional tax information.
Fortera members can invest in one of four IRA Certificates (Certificate is a technical term that describes the type of account you’re establishing within the credit union, no big deal).
Need a little help making the right choice for you? Email us at info@forteracu.com, we've got our eyes on our inbox.
IRA Account Benefits
FAQs
What is an IRA?
An IRA, short for Individual Retirement Account, is a high-earning, long-term commitment investment and savings account with the purpose of helping you save for retirement.
Who is eligible to open an IRA?
To be able to open an IRA, you must meet the following eligibility requirements: (1) You must be able to provide proof of income. (2) You must live, work, worship, or attend school in one of our service regions; join an affiliated partner, or have an immediate family member who is a Fortera member. Our service regions include Montgomery, Stewart, Chester, Decatur, Lewis, McNairy, and Perry counties in Tennessee or Christian, Trigg, Todd, McLean, and Webster counties in Kentucky. Residents of other counties in Tennessee, Kentucky, Alabama, and Arkansas may also be eligible. (3) You must have a Share Savings Account to establish Fortera Credit Union Membership.
What are dividends and how do they work for an IRA?
Dividends are extra money that your account earns just by being open and meeting our minimum account dividend earning value. IRA Accounts earn dividends quarterly as long as your account has the required minimum deposited in it. It is just another way we like to say thank you to our members for trusting us with your hard-earned "dough". To learn more about what the current dividend rate is and our other savings accounts that earn dividends, please see our Rate and Fee Disclosure.
What documents do I need to open an IRA account?
To verify your identity, we always ask that you come prepared with a government issued ID. It is important that it is not expired. Examples of acceptable IDs include a State Driver's License or a U.S or Foreign Passport. If we have trouble validating your ID, we may ask for a secondary ID. For children, we have a variety of other documents we can use to verify identities. These include social security cards, birth certificates, medicaid cards, and insurance cards. If you have a question about whether or not an ID can be used, just text us at 931.431.6800.
Can I add additional deposits to an IRA?
Our Cumulative IRAs, Smart Start IRA Certificates, and Variable Rate IRA Certificates all allow our members to make additional deposits. Our Fixed-Rate IRA Certificate does not allow additional deposits.
What happens when I withdraw from my IRA?
That's a good question! Learn a little more about what happens when you withdraw from your IRA here and if you ever have any follow-up questions, please schedule an appointment with our team.
