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)

Stewardship Investment Certificates (SIC) are Term Certificates that can be purchased for a minimum of $25. Through an SIC, 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

MinimumTermRateAPY*Penalty
$256 months3.01%3.05%90 Days of Interest
$251 year3.49%3.55%90 Days of Interest
$2515 months**4.89%5.00%182 Days of Interest
$252 years3.74%3.80%90 Days of Interest
$253 years3.98%4.05%90 Days of Interest
$254 years4.22%4.30%90 Days of Interest
$255 years4.46%4.55%90 Days of Interest
*APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance. Rate and APY as of 12/1/2023. **15-month certificates are fixed to the rate of the certificate at the time of purchase until August 1, 2024, at which time they will become a variable rate certificate as well.

Demand Certificates (TAP)

Money deposited in IRA Thrift Accumulation Plan (TAP) investments generally accumulate funds to purchase a SIC or Note. The funds earn a variable rate of interest which is accumulated monthly. Learn more.

Individuals
BalanceRateAPY*
$5 – $2,0002.52%2.55%
Over $2,000 or age 65+2.76%2.80%
*APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance. Rate and APY as of 12/1/2023. Demand Certificates (TAPs) are not available to WI residents.

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.

MinimumTermRateAPY*Penalty
$255 years4.46%4.55%90 Days of Interest prior to age 59½
$2510 years4.89%5.00%90 Days of Interest prior to age 59½
*APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance. APY as of 12/1/2023 Notes are not available to WI residents.

Learn More

Contact Sean Kleckner for more information.

skleckner@bicfoundation.org

(717) 796-4788 ext. 5429