IRA Certificate Truth-In-Savings Account Disclosures

Except as specifically described, the following disclosures apply to all of the accounts. All accounts described in this disclosure are share accounts.

1. Rate Information. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. For all accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. For accounts subject to dividend compounding, the Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings.

2. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.

3. Dividends Compounding and Crediting. The compounding and crediting of dividends applicable to each account is Quarterly. The dividend period applicable to each account is based on a calendar quarter. Dividend Period begins on the first calendar day of the Dividend Period and ends on the last calendar day of the Dividend Period.

4. Balance Information. The minimum balance requirements applicable to each account are set forth in the Rate Schedule. For all accounts, dividends are calculated by the Daily Balance method, which applies a daily periodic rate to the principal in the account each day.

5. Accrual of Dividends. For all accounts, dividends will begin to accrue on non-cash deposits (e.g. checks) on the business day you make the deposit to your account.

6. Transaction Limitations. After your account is opened, your ability to make additional deposits to your account or withdrawals of dividends and any limitations on such transactions are set forth in the Rate Schedule. Individual Retirement Account (IRA) participants who have attained age 70 ½ may withdraw their required minimum distribution (based on funds on deposit at TOPCU) from an IRA Certificate Account. Term of this type of certificate shall not exceed five (5) years. (See exceptions to early withdrawal penalties).

7. Maturity. Your account will mature as indicated on this Rate Schedule or on your Account Receipt or Renewal Notice.

Early Withdrawal Penalty. We may impose a penalty if you withdraw any of the principal before the maturity date. The effect of any withdrawal of the principal requires certificate account closure.

Amount of Penalty. For IRA Certificate, Roth IRA Certificate, and Education IRA Certificate Accounts, the amount of the penalty is as follows: For certificates with a maturity of less than (1) year, the penalty is a loss of 30 days. For certificates with a maturity of less than three (3) years, the penalty is a loss of ninety (90) days. Certificates with a maturity of three (3) years and greater, the penalty is a loss of 180 days.

How the Penalty Works. The penalty is calculated as a forfeiture of dividends or a part of the dividends that have been paid or accrued on the account. If the dividend has already been paid and withdrawn from the account, the penalty will be deducted from the principal.

Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances
(i) When the primary account holder dies or is determined legally incompetent by a court of other body of competent jurisdiction.
(ii) Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; or where the owner becomes disabled.
(iii) Where the account is an Individual Retirement Account (IRA) and the account owner has attained age 70 ½, the owner may withdraw their required minimum distribution without an early withdrawal penalty. The Term of this type of certificate shall not exceed five (5) years.

Renewal Policy. The renewal policy for your accounts is indicated above. For all Certificate accounts, your account will automatically renew for another term upon maturity. For all Certificate accounts, you have a grace period of ten (10) days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. However, if you close your certificate account on or before the 10th day of the grace period, accrued dividends will not be paid.
Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.

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