STAR offers both IRA Savings and IRA Certificates for three types of Individual Retirement Accounts—Traditional, Roth and Coverdell Educational Savings Accounts (formerly Education IRA). Earnings within Traditional IRAs are generally not taxed until they are distributed and contributions are tax-deductible for many taxpayers. Earnings within Roth and Coverdell Educational Savings are generally not subject to federal taxes. Over time these special tax features can result in significantly larger IRA savings accumulations than can be earned with ordinary savings tools.

Traditional IRA
This IRA offers tax-deferred earnings and the possibility for tax-deductible contributions until distributions begin at retirement age. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term savings plan.

Roth IRA
These contributions are not tax-deductible. However, the money in a Roth IRA, including earnings, is not taxed when you begin withdrawing funds at retirement.

Savings Account (ESA)
The purpose of this account is to help you pay for your child’s education expenses, such as tuition, fees, books, supplies, equipment and in some cases, room/board and computers. The contributions are not tax deductible.

Ask your tax advisor for details and speak with our accounts representative to open the IRA that best fits your needs.

IRA Savings

• You need only $10 to open an IRA Savings account
• You may transfer an IRA from another financial institution (or broker) to STAR
• IRA Savings are insured separately from your other deposits at STAR
• NCUA insured up to $250,000 for Traditional and Roth and $250,000 for the Coverdell Education Savings Accounts
• $10 yearly IRA maintenance fee applies

IRA Certificates

• Traditional, Roth, and the Coverdell Education IRA Certificates
• Functions like a certificate – choose your term, earn consistent dividends, and reinvest for maximum earnings.
• Minimum opening deposit of $1,000.
• NCUA insured up to $250,000 for Traditional and Roth and $250,000 for the Coverdell Education Savings Accounts.
• $10 yearly IRA Maintenance Fee applies.

About IRAs
As millions of Americans have already discovered, IRAs are one of the best savings tools available today. More people than ever before are now eligible to take advantage of the incredible tax advantages available through IRAs.

The passing of the Economic Growth And Tax Relief Reconciliation Act of 2001 (EGTRRA) on June 7, 2001, brought about the most sweeping changes related to retirement and other savings arrangements since the Tax Reform Act of 1986. The benefits of EGTRRA include, among others:

• Increased contribution limits
• Catch-up contributions for individuals who attain age 50 before the end of the taxable year
• Increased portability of assets between various plan types
• Changes to rollover rules

At the heart of what makes IRAs such a great savings tool are the special federal tax laws governing the taxation of amounts earned within an IRA.

Contact our New Accounts Representative at (530) 895-1947, ext. 214, for more information and assistance evaluating your options. 

Below are some informational brochures to assist you:

IRA Rollovers

Retirement Planning

See the Savings Overview page for more information.

This information is for educational purposes only and is not intended to provide specific tax or legal advice. For answers to tax questions, please see your tax professional. For legal questions, consult an attorney.