What is an IRA?
An Individual Retirement Account (IRA) is designed to help you save money for retirement. Our IRA products are low-risk and are NCUA-insured (separately from your other non-IRA deposit accounts) so your retirement savings are secure. Often, there are tax advantages* with IRAs, so it helps to understand the different types of IRAs and to consult with your tax advisor.
Who is it for?
Any member who wishes to save for a more secure retirement. It's never too early.
What are my options?
At Golden 1, we offer two IRA plans: Traditional and Roth. We have two IRA products that you can put into your plan: IRA Certificates and IRA Savings. We also offer a Coverdell Education Savings Account that allows you to get tax advantages while you save for your child’s future education.
* You are advised to seek advice from your own tax professional and attorney.
The Traditional IRA is an account that allows qualified tax-deductible contributions and also allows contributions and earnings to grow tax deferred*. This means that you don't pay taxes on your contributions or earnings until you take them out. Check today's rates.
Who may contribute?
Anyone with earned income from compensation may contribute. Payout distributions are required at age 73.
What is the minimum opening deposit?
$25 for 12-month IRA
$25 for IRA Savings
$500 for all other IRA terms
How much may I contribute?
If you qualify, you are permitted to annually contribute the following maximum amounts, or 100% of your earned compensation and alimony, whichever is less.
Maximum Contribution Limits Per Tax Year:
2024
$7,000 under age 50
$8,000 age 50 or older
2025
$7,000 under age 50
$8,000 age 50 or older
What are the tax advantages?
Earnings compound tax deferred until withdrawn. Earnings are then taxed when withdrawn, usually during retirement when your taxable income may be lower. Contributions may be tax-deductible if certain requirements are met.
When may withdrawals be taken without penalty?
You may withdraw without incurring a 10% IRS premature-distribution penalty:
- Upon reaching age 59½
- For qualified educational expenses
- For a first-time home purchase (lifetime maximum of $10,000 per individual)
- Upon disability
- In the event of a qualified child birth or adoption (maximum of $5,000)
- For catastrophic medical expenses
- For eligible medical insurance payments
Withdrawal of any earnings and deductible contributions still result in taxable income.
* You are advised to seek advice from your own tax professional and attorney.
The Roth IRA is an account that features tax-free withdrawals* of earnings after a five-year holding period and when certain requirements are met. Contributions are not tax deductible. Your contributions and earnings accumulate tax free. Since the money you contribute has already been taxed, you may make tax-free and IRS penalty-free withdrawals at any time—as long as the amount withdrawn is less than or equal to the contributions already made. You may invest in a Roth IRA in addition to any contributions you make to your company-sponsored retirement plan. Check today's rates.
Who may contribute?
Your eligibility to contribute and how much you can contribute is based on your tax filing status and your modified adjusted gross income. Please refer to I.R.S. Publication 590 for these details.
What is the minimum opening deposit?
$25 for 12-month IRA
$25 for IRA Savings
$500 for all other IRA terms
How much may I contribute?
If you qualify, you are permitted to annually contribute the following maximum amounts, or 100% of your earned compensation and alimony, whichever is less. Payout distributions are not required.
Maximum Contribution Limits Per Tax Year:
2024
$7,000 under age 50
$8,000 age 50 or older
2025
$7,000 under age 50
$8,000 age 50 or older
What are the tax advantages?
Earnings are tax-free if the account is open for five years and withdrawn for a qualified reason. You are not required to start withdrawals at any age. Contributions may be withdrawn tax-free and IRS penalty-free anytime.
When may withdrawals be taken without penalty?
Contributions may be withdrawn tax-free and IRS penalty-free anytime. Earnings may be withdrawn tax-free and IRS penalty-free for any of the following qualified reasons after the account has been open for five years or longer:
- After owner reaches age 59½
- Upon disability
- Upon death
- For a first-time home purchase (lifetime maximum of $10,000 per individual)
- In the event of a qualified child birth or adoption (maximum of $5,000)
* You are advised to seek advice from your own tax professional and attorney.
A Coverdell Education Savings Account allows you to get tax advantages while you save for qualifying educational expenses like tuition, room and board, and books. If it’s a private elementary school or a university, a Coverdell Education Savings Account can help you plan for your child’s future education. Check today's rates.
- Tax-free withdrawals when funds are used for qualified education purposes
- $2,000 maximum deposits per year, per child
- $25 minimum deposit for 12 month term and $500 for all other terms
- Flexible term options from 3-60 months
- Dividends are compounded monthly
- Regular account statement
- No setup or annual maintenance fees
- Longer terms offer higher dividend rate
- Automatic renewal at maturity
- Fourteen calendar day grace period at maturity date with no Golden 1 penalties to withdraw from or close account
- Federally insured by the NCUA
How Traditional IRAs work
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Contributions to your IRA are tax-deductible up to a certain limit, which is generally $7,000 per year ($8,000 if you are age 50 or over) – although other limitations may apply. If you are in the 15% tax bracket, for example, a $5,000 contribution may lower your tax bill by $750. Californians may also enjoy similar benefits on state taxes.
