Financial success for the future begins with planning today. An IRA account helps you maximize savings over time and offers tax advantages. Plan for your future with a Northland IRA.
| Type | Minimum Balance | Dividend Rate | APY* |
|---|---|---|---|
| Traditional | $0.00 | 1.55% | 1.56% |
| Roth | $0.00 | 1.55% | 1.56% |
| Education | $0.00 | 1.55% | 1.56% |
| We may impose a penalty if you withdraw funds before the maturity date. | |||
Click here for Truth in Savings disclosure
TRADITIONAL IRA - Contributions may be tax deductible.
- Invest up to $7,000 a year if you are under age 50. If you are age 50 or older, you can contribute up to $8,000 per year
- Contributions to a Traditional IRA may be fully or partially deductible depending on your income level, and whether or not you are considered an active participant in an employer sponsored plan
- Contributions from earned income can be made at any age
- Earnings may be tax deferred until withdrawn
- Withdrawals before age 591/2 may be made without penalty to help finance a higher education or your first home
- Once you reach age 73 you are required to take annual Required Minimum Distributions (RMDs) from your IRA accounts
- Fixed or variable rate options
ROTH IRA - Contributions are not tax deductible.
- Invest up to $7,000 a year if you are under age 50. If you are age 50 or older, you can contribute up to $8,000 per year
- Withdraw interest earned free of any IRS penalties after five years to buy a first home or for any purpose after the age 591/2
- Contributions from earned income can be made at any age
- Unlike Traditional IRAs, distributions are not required at age 73
- Choose fixed or variable rate options
COVERDELL EDUCATION IRA
A Coverdell Education IRA is a tax-deferred investment account to help you save for a child’s education. The minimum to open a Coverdell certificate is $100.00, while all other IRA certificates are $500.00. Deposits are tax-free. And there are no taxes or fees on withdrawals as long as the money is used for qualified educational expenses before the beneficiary turns 30. $2,000 is the annual contribution limit for each beneficiary.
Let us help you save for your family’s education. Ask about a Coverdell IRA today.
- Invest up to $2000 per year per child under the age of 18
- Transfer unused funds to another child in your family
- Choose fixed or variable rate options
- Qualified withdrawals may be tax-free
- Contributions are not tax deductible
We offer the same great rates for our IRA Certificates:
| Term | Minimum Balance | Dividend Rate | APY* |
|---|---|---|---|
| 3 Month | $500.00 | 1.25% | 1.26% |
| 6 Month | $500.00 | 3.95% | 4.01% |
| 9 Month | $500.00 | 4.00% | 4.06% |
| 18 Month | $500.00 | 4.05% | 4.11% |
| 30 Month | $500.00 | 2.35% | 2.37% |
| 3 Year | $500.00 | 2.40% | 2.43% |
| 4 Year | $500.00 | 2.45% | 2.48% |
| 5 Year | $500.00 | 2.50% | 2.53% |
| We may impose a penalty if you withdraw funds before the maturity date. | |||
| Term | Minimum Balance | Dividend Rate | APY* |
|---|---|---|---|
| We offer 1 year and 2 year term Plus Certificates. Plus Certificates are a special kind of savings option that allows you to increase the annual percentage yield, one time for the one year plus, or two times for the 2 year plus, during the certificate’s maturity period. With this option, you may choose to increase or bump-up the APY before your certificate matures to take advantage of rising interest rates. Talk to us about bumping up your savings today. | |||
| 1 Year | $500.00 | 3.75% | 3.81% |
| 2 Year | $500.00 | 2.30% | 2.32% |
| Rate may change after the account is opened. We may impose a penalty if you withdraw funds before the maturity date. | |||
Click here for Truth In Savings disclosure
Consult Your Tax Adviser
Remember, it's essential to consult your tax adviser to determine if an IRA is suitable for your financial situation.
Notice:
Payments from your IRA are subject to federal and/or state income tax withholding, unless you elect no withholding. You may change your withholding election at any time prior to your receipt of a payment. Withholding from IRA payments, when combined with other withholding, may relieve you from payment of estimated income taxes. However, your withholding election does not affect the amount of income tax you pay. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are insufficient.
To change your withholding election, stop at your local Northland branch or call 989-739-1401 to speak to an IRA representative.
Disclosure - *APY = Annual Percentage Yield. 5.09% APY is our highest 1 year fixed term compounding certificate rate and is based on a Gold member relationship. Rate effective February 15, 2023. Dividends are calculated daily, compounded quarterly and paid quarterly. Share Certificate Rate premium for Silver account is additional 0.05%APY and additional 0.10%APY for Gold. Early withdrawal penalties apply, a withdrawal of dividends will reduce earnings. Minimum balance of $500. $5 Share account required. Other Certificate rates and terms are available; please ask for details. Federally insured up to $250,000.00 by NCUA.
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