Routing Number : 311376753

Routing Number : 311376753

IRA Certificates

Individual Retirement Accounts (IRAs)

The People’s Federal Credit Union offers IRAs to help members save for retirement or for education expenses, with some of the best IRA rates in Texas.

We currently offer three types of individual retirement accounts:

  • Traditional IRAs
  • Roth IRAs
  • Coverdell Education Savings account (ESA) IRAs to cover future education expenses such as tuition, books, or uniforms.

Traditional IRAs

Receive a tax deduction on annual contributions to your IRA. In addition to tax deductible contributions, you’ll see the following traditional IRA benefits:

  • Enjoy tax-free growth as you earn interest and dividends.
  • Once you make a contribution, your funds won’t be subject to income taxes until any earnings or deductible contributions are distributed.

Roth IRAs

Your retirement savings are protected because earnings on your investment aren’t subject to federal income taxes. Earnings are tax free if certain conditions are met. Plus, your contributions can be withdrawn anytime with no taxes or penalties; tax-free withdrawals make it easier to access what you save for retirement.

Roth IRA benefits include:

  • Contributions can be made as long as you’re earning income.
  • There’s never any required minimum distribution (RMD).
  • You can pass on tax-free distributions to beneficiaries.
  • Planning for retirement is possible, yet you can access your savings now.

Education IRA

Save for your child’s future and primary, secondary, or higher education and use the money tax free for qualifying expenses. An education IRA is an option that:

  • Can be used by parents, grandparents, aunts, uncles, and other family members and friends.
  • Allows you to contribute up to $2,000 per year, per child under 18.
  • Lets you contribute apart from a personal savings plan or employer-sponsored plan.

IRA CDs

We also offer an IRA CD with a 12-month term and a $10,000 minimum deposit that pays competitive quarterly dividends. See our IRA CD rates below.

There are many regulations that apply to IRAs. For more information, contact member services.

Term Dividend APY *
12 Months 4.67% 4.75%

(Paid Quarterly) $10,000 Minimum

Accounts insured up to $250,000 on members’ cumulative deposits in share-type accounts.

IRAs are separately insured for up to $250,000.

* All rates are quoted at the Annual Percentage Yield (APY)

Penalties: The People’s Federal Credit Union currently offers Share Certificates of varying lengths. If we consent to a request for a withdrawal that is otherwise not permitted, you may have to pay a penalty. The penalty will be the greater of $25 or loss of dividends, whether earned or not, on amounts withdrawn equal to dividends that would have accrued over 50% of the remaining term. When a non renewal Share Certificate is opened, federal law requires a minimum seven day penalty if the Share Certificate is withdrawn. If the account has not been open for at least seven days, the penalty must be taken from principle. We may waive or reduce this penalty in certain circumstances, such as death or incompetence of an owner. Other penalties may apply according to normal IRA rules, such as the premature distribution penalty tax or early withdrawal penalty.

Grow Your Retirement Savings with a TPFCU IRA

Individual retirement accounts have unique tax advantages and provide you with much-needed retirement income later. Feel free to browse for more information and compare IRA rates. For additional benefits, start your application with our credit union, or call 806-359-8571 for assistance.

IRA FAQs

An individual retirement account (IRA) is a savings account with tax advantages that individuals can open to save and invest in the long term to plan retirement.
The benefits of an IRA include possible tax deductions, tax-deferred or tax-free growth on earnings, and tax credits if the individual is eligible.

The more common types of IRAs include Traditional IRA, nondeductible IRA, and Roth IRA. The less common types include Spousal IRAs, Simplified Employee Pension (SEP) IRA, Education IRA, and Simple IRA.

TPFCU offers only Traditional, Roth, and Education (ESA) IRAs.

You can make a deposit at any branch location at any time. You can also set up your payroll to transfer money to your IRA each paycheck or set up a monthly transfer contribution. There are annual contribution limits that are subject to change with each change to the tax laws. To see the most current contribution limits for Traditional and Roth IRAs you can visit the IRS website: Retirement Topics – IRA Contribution Limits | Internal Revenue Service (irs.gov)

Your first RMD must be taken by April 1st of the year after you turn 72 years old. RMDs must be taken by December 31st of each year thereafter. You may take your distribution monthly, quarterly, or annually.
You must be at least 18 to set up and contribute to your IRA. While minors generally cannot open an IRA in their own name until they are 18, there is an option for the parent or guardian to open an Education (ESA) IRA in the minor’s name, which they would be able to use for educational purposes.
Generally, early withdrawal from an IRA prior to age 59 ½ is subject to being included in gross income plus a 10% additional tax penalty.
If you meet eligibility requirements, such as having earned income, you can contribute to both a Roth and a Traditional IRA simultaneously. However, the total contributions you make each year to all of your Traditional and Roth IRAs must not be more than the allotted annual contribution limit.
TPFCU requires a deposit of $100.00 to open an IRA.

The IRS determines each year the contribution limits (deposit) for IRAs for that year. You can find the most up-to-date information in regard to limits on the IRS website at: Retirement Topics – IRA Contribution Limits | Internal Revenue Service (irs.gov)

Yes, the rate depends on the financial institution’s interest rates for the IRA. Continue browsing to compare IRA rates and choose from credit union retirement plans that work for you.

You can consolidate retirement accounts by transferring money from multiple accounts into one established IRA. You can direct transfer to the new IRA from the old one. However, if you do a rollover transaction (which means you have access to the funds or the check is made payable to you) then you are only allowed one of these types of transactions in a 12-month period.

Please ask your TPFCU member service representatives for guidance on the best option for rolling over or transferring your IRAs.