Individual Retirement Account

Individual Retirement Account

you have options

When you invest your retirement savings in an IRA at Capitol Federal®, you earn stable returns you can count on, from a variety of options. You’ll be able to choose from a wide range of our Certificate of Deposit terms for attractive, competitive rates. Or choose from our variable rate Savings IRA giving you the ability to make additional deposits.

Traditional IRAs may be deposited in any CD term of 4 years or less. Roth and Educational IRAs may be deposited in any CD term of 5 years or less.

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Do you have questions about which IRA is best for you?

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Important Changes to IRA Accounts For 2020 

Starting January 1, 2020, several new laws are in place that will immediately impact IRA account customers.

New laws will change:

RMD Age Change –  Under the new law, customers are required to begin their RMDs in the year in which they turn 72 years of age. This change is effective for individuals who would turn 70 ½ in 2020 or later. Customers who turned 70 ½ in 2019 are still required to take their RMD in 2020 and 2021 even if they don’t turn 72 until 2022.

Contribution Age –The new law removes the 70 ½ restriction for when customers are eligible to contribute to their IRA. Customers who meet other eligibility requirements can make contributions at any age. This is effective in tax year 2020. So, individuals who are over 70 ½ can make a 2020 contribution, but cannot make a 2019 contribution even if they do so in 2020 before the tax deadline. No prior year contributions from individuals who are 70 ½ or older are allowed 

More Rapid Inherited IRA Payouts – Unless the beneficiary is the IRA holder’s spouse,  the beneficiary will be required to take the RMD payments at a more rapid pace. Non-spouse beneficiaries will be allowed a maximum of 10 years to completely deplete the IRA under the new law. This is in effect for deaths occurring on 1/1/2020 or later. Customers who have already inherited an IRA will not see their payments accelerated. 

Penalty Free Withdrawals for Birth or Adoption of Child
– If you have a 401(k), IRA or other retirement account, the new retirement law lets you take out up to $5,000 following the birth or adoption of a child without paying the usual 10% early-withdrawal penalty. If you're married, each spouse can withdraw $5,000 from his or her own account, penalty-free.

More information regarding the 2020 IRA changes.

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Interest Rates and Annual Percentage Yields (APY) 

Rates Effective as of September 21, 2021

Term of Deposit Minimum Balance to earn APY Interest Rate Annual Percentage Yield
2 Years $1,000 0.40% 0.40%
Open the Featured CD at any Capitol Federal® branch or online today.

May be subject to early withdrawal penalty. $1,000 minimum balance to open and earn APY. Certain restrictions apply when opening an account online. IRAs and personal trust accounts cannot be opened online. Rates subject to change.

traditional ira

Allow your investment earnings to grow potentially tax-free until you withdraw them in retirement.  Contributions may be tax-deductible, allowing you to lower your current tax bill. When you retire, your withdrawals are taxed as regular income. Anyone, under age 72, who has earned income equal to or greater than his or her IRA contribution, is eligible to open a Traditional IRA.

May be good for…

  • Reducing your current taxes
  • Customers under age 72 with earned income
  • Simple retirement investment option
  • FDIC-insured, secure investment
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Roth IRA

Roth IRAs allow for tax-free distributions, including interest earnings after one of several life events occurs. It’s this flexibility that makes the Roth IRA an attractive investment for retirement. Typically, customers enjoy greater tax savings with a Roth IRA than with a Traditional IRA. If you are looking for a safe retirement savings option, this is a perfect place to start.

May be good for…

  • Retirement savings with tax-free growth
  • Greater withdrawal flexibility
  • FDIC-insured, secure investment
More on Roth IRA