Individual Retirement Accounts (IRAs)
Frequently Asked Questions

CEFCU is a credit union and those that do business with CEFCU are the Credit Union’s member/owners. To be a member, you must have a $5 share in a Savings account. If you only had an IRA at Simmons, CEFCU will fund the opening deposit ($5) for a new required non-IRA Savings account. This is required for membership at CEFCU. If you had other accounts at Simmons, your IRA will be placed as a new suffix under your new CEFCU Savings account (excludes Trusts).

No, because CEFCU keeps IRA deposits from different sources separated by plans –

• Contribution Plan — yearly IRA contributions that have never been moved from one financial institution (FI) to another.
• Transfer Plan — contributions that have been withdrawn and deposited to another FI without the IRA holder attaining constructive receipt of the money.
• Rollover Plan — contributions that have been withdrawn and re-deposited within 60 days at the same FI or another FI.

Each IRA will include a new $0 balance IRA Daily (Savings) account. This IRA Savings account can be used for IRA funds not in a term account. If you are eligible for contributions, those can be made to this account and will earn the regular Savings rate.

IRA Certificates can be opened with a $500 minimum balance for regular Certificates and $100,000 for a Jumbo Certificate.

Your IRA dividends will be compounded and credited monthly.

Dividends earned on IRA Certificates will post back to the IRA.

If CEFCU does not offer the same term, your IRA Certificate will renew for the next longest term offered at CEFCU, or if your previous term was greater than 60 months, it will become a 60-month term at its next maturity date.

The grace period is 7 calendar days.

• Withdrawals can be done during the 7-calendar-day grace period after the date of maturity in order to avoid a penalty.
• Partial withdrawals from a Traditional IRA Certificate are allowed for members 59½ and older at any time with no penalty or fee.
• The following applies to partial withdrawals from a Traditional IRA Certificate for members 59½ or younger and Roth IRA Certificates –
  • The IRA Certificate will be closed and an early withdrawal penalty will apply.
  • A $5 withdrawal fee will apply.
  • You may reopen a new IRA Certificate for the remaining balance. Current rates will apply.
  • For Traditional IRA Certificates, you may be subject to taxes and the IRS early distribution penalty tax due to your age. For Roth IRA Certificates, you may be subject to taxes and IRS early distribution penalty tax if it’s not a qualified distribution.

You can set up automatic withdrawals for the 15th of each month, or annually, to be posted to a CEFCU account or a check can be mailed to you.

For Contribution IRA Certificates, additional contributions can be made during the 7-calendar-day grace period after the date of maturity. Deposits can be made to the IRA Daily account at any time.

Yes, please visit your local CEFCU Member Center or call the IRA Department 1.800.633.7077, ext. 33409 to set up future instructions.

Please visit the IRA information page on our website, or call to speak to a representative at 1.800.633.7077, ext. 33409 with any questions related to Individual Retirement Accounts at CEFCU.