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Overview
Why open an IRA with HFS?
“You can be young without money, but you can’t be old without it.” -Tennessee Williams
Proper planning and preparation is key to enjoying your retirement. With your Credit Union, you can select the IRA that best fits your financial goals.
Traditional IRA
A Traditional IRA allows you to save pre-tax income for retirement. Tax payments are deferred until the money is withdrawn, giving you the benefit of earning compound interest on the larger untaxed amount. In addition, your contributions may be tax deductible.2
The NCUA insures Traditional and Roth IRAs for $250,000 in the aggregate at each Credit Union. Click here for more detailed information on Traditional IRAs and review the “How Your Accounts are Federally Insured” brochure for details on your additional retirement account coverage.
Roth IRA
Contributions to a Roth IRA are made with after-tax income which allows you to withdraw the money without penalties or taxes anytime during or before retirement.2 Your earnings have tax-free interest, dividends and distributions, if money remains in the IRA for at least 5 years and is withdrawn for a qualified distribution.
The NCUA insures Traditional and Roth IRAs for $250,000 in the aggregate at each Credit Union. Click here for more detailed information on Roth IRAs and review the “How Your Accounts are Federally Insured” brochure for details on your additional retirement account coverage.
Coverdell Education Savings Account
A Coverdell Education Savings Account allows parents and students to save up to $2,000 of after-tax income per child, per year, and let it grow tax free for education expenses.2 Tax free growth means you won’t pay taxes on earnings from interest, dividends, appreciation, etc., if used for an eligible institution which include elementary, secondary, and postsecondary schools.
Click here for more detailed information on Coverdell Education Savings.
1APY = Annual Percentage Yield. For Individual Retirement Accounts, the dividend rate is generally indexed to the 26-week Treasury Bill and may change quarterly. The dividend rates and fees may change after the account is opened and are subject to change. Fees may reduce earnings. There is no minimum balance to earn the stated dividend rate.
All current and available dividends and fees are available in the Rates and Fees tab.
2Please consult with your tax advisor for more information regarding tax implications.
Membership with the Credit Union is required and open to all who live, work, worship, attend school, volunteer or participate in associations headquartered on the island of Hawaii. A minimum opening balance of $50.00 is required to open a Savings Account.Additional Info
You may have the funds transferred from your Savings Account or bring cash, check or money order for your opening deposit.
Existing members may open an IRA by calling the Credit Union or visiting any of our branches.
Download a copy of an informational IRA brochure below.
Traditional and Roth IRAs
Traditional IRAs
Roth IRAs
Transfers, Rollovers, and Conversions
IRA and Retirement Plan Distributions
Inherited IRAs
Coverdell ESAs
Retirement Plans
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Reviews
IRA Reviews
My Review
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Rates & Fees
Rates Effective as of: 09-22-2023
IRA
Dividend Rate Annual Percentage Yield (APY) Dividend Compounded Dividends Credited Dividend Period 5.41% 5.52% Quarterly Quarterly Quarterly (Calendar) 1APY = Annual Percentage Yield. For Individual Retirement Accounts, the dividend rate is generally indexed to the 26-week Treasury Bill and may change quarterly. The dividend rates and fees may change after the account is opened and are subject to change. Fees may reduce earnings. There is no minimum balance to earn the stated dividend rate.
For Individual Retirement Accounts, the dividend rate is generally indexed to the 26-week Treasury Bill and may change quarterly. The dividend rates and fees may change after the account is opened and are subject to change. Fees may reduce earnings. There is no minimum balance to earn the stated dividend rate. Please consult with your tax advisor for more information regarding tax implications.
Membership with the Credit Union is required and open to all who live, work, worship, attend school, volunteer or participate in associations headquartered on the island of Hawaii. A minimum opening balance of $50.00 is required to open a Savings Account.
Truth in Savings Disclosure
Schedule of Fees and Charges- Consumer Accounts -
Calculator
Calculator
The Calculator Tools are not guarantees of credit. Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
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FAQ
Frequently Asked Questions
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What is an IRA?
An Individual Retirement Account (IRA) is a specific savings designated for retirement. HFS offers the Traditional IRA and Roth IRA. In addition, parents may choose to open a Coverdell Education Savings Account for student educational expenses. Details can be found in the IRA Overview tab.
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What are the contribution limits?
Contribution limits are determined annually by the Internal Revenue Service. Please contact an IRA Specialist at 930-1400 for current contribution limits.
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What happens to the funds in my IRA upon death?
Upon death, funds will be given to those specified as a beneficiary of your IRA. This may not necessarily be the same as those on your account. If a beneficiary has not been designated, the IRA becomes part of your estate.
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How many beneficiaries can I designate? What information do I need to provide for my beneficiaries?
There is no limit to the number of beneficiaries you can designate. The information needed includes: legal name, Social Security Number, birthdate and mailing address.
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Can I withdraw from my IRA at any time? Are there any penalties?
Yes, you can withdraw from your IRA at any time. The Credit Union does not charge any penalties, although you may be subject to tax penalties depending on the type of IRA and the type of withdrawal. Please see the IRA Overview tab for more information.
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Are there any fees associated with an IRA?
No, the Credit Union does not charge any fees.
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What is an IRA?
Questions?
Drop us a message anytime with your questions about an IRA with HFS.
