IRA

With an IRA (Individual Retirement Arrangement), you choose the plan that's right for you. The links below will help you with your selection. Depending on your choice, you may be able to take a tax deduction for Traditional IRA contributions, or withdraw the earnings on a Roth IRA tax-free. Our online features make it easy to establish an IRA, name your beneficiary(ies) and view and manage your account.

Traditional/Roth

Traditional IRA

Traditional IRAs are potentially tax-deferred retirement plans; you don't pay taxes on your contributions until you withdraw the funds. Contributions can be made as long as you have earned income and you're below the age of 70½.

Yearly Contribution Limits
Tax Year Under 50 Age 50 and Over
2018 $5,500 $6,500
Contribution Deadlines
Contribution Deadlines
Current tax year: December 31, 2018
Prior tax year: April 17, 2018

If you are covered by a retirement plan at work, use this table to determine if your income affects the amount of your deduction.

Income Limits for Tax Deductions
Income for Married Filing Joint Income for Single Filer Deductibility
$101,000 or less $63,000 or less Contribution is 100% tax-deductible
Between $101,000 - $121,000 Between $63,000 - $73,000 A portion of your contribution is tax-deductible
$121,000 or more $73,000 or more Your contribution is not tax-deductible

Roth IRA

With a Roth IRA, you pay taxes now and withdraw the funds tax-free when you retire. Contributions can be made after the age of 70½ without any required minimum distributions as long as you have earned income.

Yearly Contribution Limits
Tax Year Under 50 Age 50 and Over
2018 $5,500 $6,500
Contribution Deadlines
Contribution Deadlines
Current tax year: December 31, 2018
Prior tax year: April 17, 2018

Traditional IRA and Roth IRA Comparison

Traditional IRA and Roth IRA Comparison
Feature Traditional IRA Roth IRA
Maximum Annual Contribution (The maximum can be contributed to one or the other -or- split between both.) $5,500 (if under age 50)
$6,500 (age 50 and over)
$5,500 (if under age 50)
$6,500 (age 50 and over)
Tax Deductibility of Contributions Tax deferred up to 100% depending on Annual Gross Income and participation in an employer-sponsored retirement plan Taxes are paid up-front
Earnings Grows tax-deferred until withdrawn Grows tax-free
Taxes Upon Withdrawal Withdrawals are taxed as income None, unless taxed for early withdrawals
Withdrawal Restrictions Most withdrawals before age 59½ result in IRS penalties Most withdrawals before age 59½ result in IRS penalties
Age at Which Withdrawals Must Begin 70½ None

SEP

Simplified Employee Pension (SEP)

If you're self-employed (or work for a participating employer), an SEP plan may be the ideal way to save for retirement. You may make contributions into your own and into each of your eligible employee's SEP plans.

  • Available to all types of businesses: sole proprietorships, partnerships and corporations
  • SEPs must be established under the employee's personal account
SEP Constributions
Tax Year Maximum Annual Contribution
2018 Cannot exceed 25% of your annual compensation or $55,000, whichever is less.

MMSA & Savings

MMSA & Savings

Our IRA Money Market and Savings Accounts do not require a minimum deposit or set term. These accounts accept contributions, IRA funds from other financial institutions, and 401(k) rollovers. How to transfer funds.

IRA Money Market Savings Account

  • Offers higher dividend rates for higher balances.
  • Account has four dividend rate tiers:
    • $50,000 and over
    • $25,000 to $49,999
    • $10,000 to $24,999
    • $0 to $9,999*

*A $2,500 minimum balance must be maintained to earn dividends.


Jumbo IRA Money Market Savings Account

Offers higher dividend rates for higher balances:

SEP Constributions
Tax Year Maximum Annual Contribution
2018 Cannot exceed 25% of your annual compensation or $55,000, whichever is less.

IRA Savings Account

  • Contributions can be made at any time, up to the maximum amount indicated by the IRS.

Certificates

Certificates

Our IRA certificates accept contributions and rollovers, and are designed with a variety of terms and minimum balance options to help you reach your retirement goals. Choose a certificate with a one-time deposit, or open an EasyStartSM which allows additional deposits throughout its term.

IRA Certificates

Short Term: 3-, 6-, 9-, 12-, 18-, and 24-month terms

Long Term: 3-, 4-, 5-, 6-, and 7-year terms

IRA Certificate Maturity Instructions

(Non-Account Access IRA Certificate Maturity Instructions)


EasyStartsm IRA

Only $100 to open account

IRA Certificate Maturity Instructions

(Non-Account Access IRA Certificate Maturity Instructions)


Three-Year Variable Rate Certificate

$500 minimum, available for 3-year term

IRA Certificate Maturity Instructions

(Non-Account Access IRA Certificate Maturity Instructions)


Trusteed

Trusteed IRA

A retirement savings plan that offers the tax benefits of an IRA and the flexibility of a trust.

  • Gives you control over distributions from your IRA to a beneficiary
  • You can limit distributions to income only, or you may provide for more liberal distributions for health, education, maintenance and support
  • Trustee of your IRA will make payouts to the beneficiary according to your restrictions
  • Required minimum distributions set by IRS code will always be made to the beneficiary

You and your beneficiaries may benefit from a Trusteed IRA if you have:

  • A blended family (second marriage with children from your first marriage)
  • A beneficiary who may unwisely misspend or mismanage IRA assets
  • The desire to plan for incapacity or avoidance of guardianship

Call Navy Federal Financial Group at 1-877-221-8108.

Nondeposit investment and insurance products are offered through Navy Federal Financial Group, LLC (NFFG) and through its subsidiary, Navy Federal Brokerage Services, LLC (NFBS), a member of FINRA/SIPC and an SEC registered investment advisory firm. Brokerage and advisory products are offered through NFBS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of the credit union, are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. Products may be offered by an employee who serves both functions of accepting member deposits and selling nondeposit investment and insurance products. 1-877-221-8108.

Also Check Out...

Important IRA Information

Learn about an IRA Rollover Rule.


Direct Transfers and Rollovers

Moving funds from another qualifying plan to a Navy Federal IRA is simple and may be processed as a transfer or rollover. Consult a reputable tax advisor to help decide which is best for you.

  • Direct Transfer–Funds are sent directly from another IRA to a Navy Federal IRA. Direct Transfers are not reported to the IRS.
  • Direct Rollover–Funds are distributed from a qualified retirement plan, such as a 401(k) or TSP*, and deposited into a comparable IRA plan. Direct Rollovers are reported to the IRS.
  • Indirect Rollover–Funds are distributed directly to you and must be deposited into an IRA account within 60 days to avoid being taxed. Indirect Rollovers are reported to the IRS.

Things to Consider

Before you decide on an IRA, first consider what's important to you.

Things to Consider
Being able to: Traditional Roth SEP
Get a potential tax write-off checkmark checkmark
Contribute to your IRA without income restrictions checkmark checkmark
Earn dividends tax free checkmark
Contribute to your IRA without age restrictions, as long as you have earned income* checkmark checkmark
Contribute to your IRA or receive employer contributions checkmark

*Earned income includes wages, salaries, tips, professional fees, bonuses, commissions, self-employment income, alimony, separate maintenance, and other amounts that appear in Box 1 on your W-2.


Appointing Beneficiaries

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. You'll want to refer to the terms of your IRA plan agreement to verify how your IRA assets will be distributed.

Rates

Student Loans as low as+ 4.29% APR

Auto Loans as low as+ 2.89% APR

Certificates as high as 3.25% APY

Credit Cards as low as++ 7.99% APR

We encountered an issue with our Rates feed, please call for rates or check back later.