Frequently Asked Questions (FAQs)

What are your current IRA rates?

What types of IRAs do you offer?

Traditional, Roth, Coverdell ESA, Spousal and SEP

What is the difference between a Traditional IRA and a Roth IRA?

Traditional IRA: Contributions to a Traditional IRA may be tax deductible and the interest earned is tax deferred. Regular distributions from a Traditional IRA are taxable. You must begin taking distributions after the age of 70 ½ and can no longer make contributions.

Roth IRA: Contributions to a Roth IRA are not tax deductible and the interest earned is tax deferred. Regular distributions from a Roth IRA are not taxable. You are not required to take distributions by 70 ½ and can continue to make contributions as long as you have earned income. Your Roth IRA has to be established for a minimum of 5 years before you can take tax-free distributions.

Can I take distributions from my IRA?

Yes. According to the IRS you can take distributions from your Traditional IRA once you turn age 59 ½. For Roth IRAs, you can take distributions if you are 59 ½ and have had your account open for at least 5 years. Church Extension Plan does not access any penalties for distributions from IRAs. However, there is a 6-month interest penalty for transferring your IRA to another custodian before the 5-year term is up.

No. IRAs must be held in the name of an individual. If the person is married, the spouse usually is the primary beneficiary and the trust is the contingent beneficiary. If the person is not married, the trust can be the primary beneficiary.

What is the Required Minimum Distribution (RMD)?

A RMD is an amount of money that the IRS requires you to take from a Traditional IRA account once you reach age 70 ½. The dollar amount is figured by a calculation of your age and end balance of the previous year.