Individual Retirement Account (IRA)
We all hope to retire someday, and creating a comprehensive plan can take the stress off our later years. Our Individual Retirement Accounts (IRAs) take that a step further and enable our clients to prepare for their future while investing in BIC ministries and churches. Our range of IRA options provide solutions to your unique retirement needs.
Types of IRAs
Traditional IRA
Unlike retirement plans that require you to work a certain number of years or until a certain age before the funds are yours, a Traditional IRA is 100% yours from the beginning. Contributions are made pre-tax, and you may make withdrawals at any time. The amount of the contribution depends on your income and other IRA investments made during the year. Please note that withdrawals before age 59½ are currently subject to a 10% IRS penalty; Minimum Distributions are required beginning at age 73.
Simplified Employee Pension (SEP) IRA
Simplified employee pension (SEP) IRAs allow small employers to provide a basic retirement plan for themselves and their employees (if any) without the cost and complexity of a 401(k) or similar plan. In addition, employers can take a tax deduction for their contributions, much like a traditional IRA.
Roth IRA
Roth IRAs grow tax-free, and under certain situations, distributions are tax-free after five years. Contribution limits depend on your income and other IRA investments made during the year. Roth IRAs are not subject to the Required Minimum distributions rules.
BIC Foundation IRA Investment Options
Within the overarching IRA accounts offered by the Brethren in Christ Foundation, your funds will be housed within Term Certificates, Demand Certificates, or IRA note investments:
Term Certificates (SICs)
Term Certificates (SIC) that can be purchased for a minimum of $25. Through a Term Certificate, you are committing to invest the original principal balance for the designated amount of time. You can choose investment terms from six months to five years (options below). Early redemption penalties and IRS withdrawal rules apply. Learn more
| Minimum | Term | Rate | APY* | Penalty |
|---|---|---|---|---|
| $25 | 6 months | 3.49% | 3.55% | 90 Days of Interest |
| $25 | 1 year | 3.97% | 4.05% | 90 Days of Interest |
| $25 | 15 months | 5.12% | 5.25% | 182 Days of Interest |
| $25 | 2 years | 4.21% | 4.30% | 90 Days of Interest |
| $25 | 3 years | 4.45% | 4.55% | 90 Days of Interest |
| $25 | 4 years | 4.69% | 4.80% | 90 Days of Interest |
| $25 | 5 years | 4.93% | 5.05% | 90 Days of Interest |
Demand Certificates (TAP)
Within an IRA, the Demand Certificate (TAP) investments are generally used to accumulate funds to purchase a Term Certificate or Term Note. The funds earn a variable rate of interest which is accumulated monthly. Learn more.
| Investment Balance | Rate | APY** |
|---|---|---|
| $5.00 – $10,000 | 2.96% | 3.00% |
| $10,000.01 – $25,000 | 3.11% | 3.15% |
| $25,000.01 – $50,000 | 3.25% | 3.30% |
| $50,000.01 – $100,000 | 3.45% | 3.50% |
| $100,000.01 – $500,000 | 3.69% | 3.75% |
| $500,000.01+ | 3.98% | 4.05% |
| Ministry Demand Certificates | Reduced Interest Rates | Reduced APY |
Individual Retirement Account Notes (IRA)
IRA Notes can be purchased for a minimum of $25 and have a maturity date of 5 or 10 years from the date of issuance. Withdrawals in the event of death, disability, or for income purposes after the age of 59½ are penalty-free. The variable interest rate accumulates or is payable monthly.
| Minimum | Term | Rate | APY* | Penalty |
|---|---|---|---|---|
| $25 | 5 years | 4.93% | 5.05% | 90 Days of Interest prior to age 59½ |
| $25 | 10 years | 5.12% | 5.25% | 90 Days of Interest prior to age 59½ |
