Kern Schools is committed to helping you meet your retirement goals, and an Individual Retirement Account (IRA) will help you get there.

Individual Retirement Accounts (IRAs)

Choose from Traditional, Roth, or Coverdell Educational Savings Account (ESA) Certificates with a variety of features to meet your needs:

  • Terms of 12, 24, 36, 48 and 60 months
  • Minimum opening deposit of $100
  • Fixed-term account
  • Dividend rates based on term
  • Dividends compounded and paid monthly
  • Additional deposits allowed

Traditional IRA: Eligible contributions may be tax-deductible. Earnings grow tax-deferred, so you will not pay income taxes on any earnings until withdrawals are made. Both deductible contributions and earnings are taxed at your regular income tax rate when money is withdrawn. Consult with your tax advisor for more information.

Roth IRA: Contributions are never tax-deductible, so they are always tax-free upon distribution. Earnings are tax-deferred, so you will not pay income taxes on earnings until you make withdrawals. And, if you take a “qualified distribution” your earnings are tax-free as well.

Coverdell ESA Certificates: is an education savings vehicle for children, with a $2,000 contribution limit per year. ESA contributions are not tax-deductible, but if assets are used for qualified education expenses the earnings can be tax-free. ESA accounts can be used for elementary, secondary, or higher education expenses.

IRA Certificate Rates

Rates Effective As Of 08/17/2017. ALL RATES, TERMS AND CONDITIONS SUBJECT TO CHANGE.

Account Name Minimum to Open/Earn APY Dividend Rate Annual
Percentage
Yield (APY)
12 Months Traditional/ Roth/Coverdell/ IRA Certificate $ 100.00 0.35% 0.35%
24 Months Traditional/ Roth/Coverdell/ IRA Certificate $ 100.00 0.55% 0.55%
36 Months Traditional/ Roth/Coverdell/ IRA Certificate $ 100.00 0.75% 0.75%
48 Months Traditional/ Roth/Coverdell/ IRA Certificate $ 100.00 0.85% 0.85%
60 Months Traditional/ Roth/Coverdell/ IRA Certificate $ 100.00 1.24% 1.25%

Early withdrawal penalties may apply.