IRA CERTIFICATES FAQ

• What is an IRA Certificate account?

  An IRA Certificate, also known as an IRA Share Certificate, combines the tax advantages of an individual retirement account with the security and earning potential of a Savings Certificate. It allows you to contribute up to $7,000 annually from your earned income (subject to IRS limits) and grow your savings tax-free within the certificate's term, which can range from 3 to 60 months. At the end of the term, you can reinvest your funds into the same certificate or choose a different term. While your contributions and earnings grow tax-free, they are taxed upon withdrawal after age 59½. Early withdrawals may incur penalties.

• What is a Roth IRA Certificate

  A Roth IRA Certificate functions similarly to a Traditional IRA Certificate, with a key difference in how contributions and withdrawals are taxed. Contributions to a Roth IRA Certificate come from your earned income after taxes have been paid, meaning they are not tax-deductible. However, your earnings grow tax-free, and both contributions and qualified withdrawals are tax-free in retirement (after age 59½ and if the account has been open for at least five years).

  A Roth IRA Certificate is especially advantageous if you expect to be in a higher tax bracket during retirement, as you avoid paying taxes on your withdrawals at that higher rate. Additionally, unlike a Traditional IRA, Roth IRAs do not require minimum distributions during the account holder's lifetime, offering more flexibility.
  
  

• How is an IRA Certificate different from a regular IRA or a Certificate?

  IRA Certificates feature both similarities and differences with other types of savings and retirement accounts.

  • Like a Share Certificate account, you may choose your term and earn higher rates for longer terms.
  • Like an individual retirement account (IRA), there are annual contribution limits and different tax advantages depending on whether you choose a Traditional IRA or Roth IRA.
  • Like an IRA, you must contribute from your earned income, so you must be employed.
  • Because it's an IRA Certificate, your funds are invested in Certificate accounts, whereas some other types of IRAs and retirement accounts are invested in the unpredictable stock market.

• Are there any age restrictions on contributions to an IRA Certificate?

  You can contribute to an IRA at any age as long as you have earned income, such as wages, salaries, or self-employment income. Here are the key contribution guidelines for 2025:

  • If you are under 50, you can contribute up to $7,000 per year.
  • If you are 50 or older, you are eligible for a catch-up contribution and can contribute up to $8,000 per year.

  These contribution limits apply to the total amount contributed across all your IRAs (Traditional and Roth).

• What is the minimum deposit required to open an IRA Certificate Account at Wasatch Peaks Credit Union?

  You can open a Wasatch Peaks IRA Certificate with as little as $500.

• What is an IRA Certificate term, and what do I do when it ends?

  An IRA Certificate term is how long you agree to leave your funds untouched.

  • The term may be anything from 3 months up to 60 months.
  • Longer terms tend to earn higher rates, but some special terms may also earn higher rates.
  • You may face a penalty for early withdrawal if you withdraw funds before the end of your term.

  The end of your Certificate term is known as the maturity date. At that time, you may reinvest your funds into another certificate term, invest the money into another IRA Certificate with a different term, or roll it over into a different type of Roth or Traditional IRA.

• What can I use money withdrawn from an IRA account for?

  Once the money is withdrawn from an IRA account after you reach the age of 59½ and any tax due on the amount is paid, you are free to use the money on anything you wish, from life-long learning classes at Weber State University to birdwatching tours at the Bear River Migratory Bird Refuge.

• Why should I open my IRA Certificate Account at Wasatch Peaks Credit Union?

  Choosing Wasatch Peaks for your IRA Certificate Account guarantees you access to a wide choice of certificates with terms from 3 to 60 months. We also offer some of the best IRA certificate of deposit rates in Utah. And, it all comes with our trademark personalized member service! 

• Do I need to join Wasatch Peaks Credit Union to open this account?

  Yes, you need to join the credit union, and becoming a member is easy! You simply need to meet these broad criteria:

  • You are an immediate family member of an existing member-owner, such as a parent, child, brother, sister, spouse, or surviving spouse.
  • You live, work, worship, or attend school in Weber, Morgan, or Davis Counties in Utah, or within a select underserved community in Box Elder, Salt Lake, Summit, Utah, Tooele, and Juab Counties.
  • You are a member of Trails Foundation of Northern Utah (TFNU.org), a 501(c)(3) NGO that functions as a planner, promoter, constructor, and protector of a network of public paths, trails, and related open spaces for non-motorized use. Not a member of the Trails Foundation Northern Utah? Wasatch Peaks will enroll you at no additional cost to you.
  • None of these fit, but I still want to join. A Wasatch Peaks Member Service Representative will find the best eligibility option for you.