Company pension and other savings plans can help you live a comfortable life when you retire, and you can begin receiving Social Security payments as early as age 62. But even the combination of these two resources may not help you enjoy the lifestyle you desire. Even when Social Security payments are raised, it’s often the case that Medicare payments rise more quickly.

In many cases you can contribute to both an employer-sponsored plan (such as a 401(k)) and an IRA to gain even more savings opportunities and tax benefits. But you need to consult with tax professional to determine whether contributions are tax deductible.

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:

2023
$6,500 under age 50
$7,500 age 50 or older

2024
$7,000 under age 50
$8,000 age 50 or older

Contributions for 2022 made before April 15, 2023 may be tax deductible for the prior tax year.

Golden 1 offers a savings account and certificates of deposit that range from 3 months to 60 months. You can also consult with a wealth planning expert for other investment options.

You can open a Golden 1 IRA with as little as $25.

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.

In general, you pay taxes on money you withdraw from your IRA. It may be, however, that you will be in a lower tax bracket when you retire.

Yes. Some IRA owners may not be permitted to make a deductible IRA contribution or choose not to claim a deduction, but can still contribute to their IRAs as long as the combined total of deductible and nondeductible contributions does not exceed the annual contribution limits (plus catch-up contributions if eligible) or 100 percent of earned income, whichever is less.

Yes. IRA owners may move their account from one financial organization to another. Transfers and rollovers are two methods of moving assets from one IRA to another IRA of the same type. Contact us for more information.

In general, you can begin withdrawing assets as early as age 59½ without penalty. In some cases, you may withdraw assets earlier. Contact us for more information.

Even if you decide not to withdraw funds when reaching age 59½, you must begin withdrawing minimum distributions when you reach the age of 73. (Members born on or before June 30, 1949 are still required to take their minimum distribution the year they turn 70½.)

In many cases, yes, you can have both a Roth IRA and a Traditional IRA and enjoy the benefits of both.

Unlike a traditional IRA, you may not deduct your contributions from your current year taxes. But in exchange, your earnings grow tax-free and you are NOT taxed on funds you withdraw from your Roth IRA.

Yes. You may convert assets from a Traditional IRA to a Roth IRA, but must pay taxes on previously untaxed contributions. Consult a tax advisor to determine whether converting pretax retirement assets is beneficial.

No. Unlike a Traditional IRA, you are never required to withdraw funds from your Roth IRA.

Yes. In many cases, individuals benefit by contributing to both types of IRAs.

A Coverdell Education Savings account can be used for qualifying educational expenses for private elementary schools or colleges and universities, including on tuition, room and board, as well as books. Withdrawals are tax-free when the funds are used for qualified educational expenses.

Yes. A minimum deposit of $25 is required for a 12-month term and a minimum deposit of $500 is required for all other terms.

There is a maximum deposit of $2,000 per year, per child.

Golden 1 offers members flexible term options starting at 3 months and all the way up to 60 months. There are no setup or annual maintenance fees with a Coverdell Education Savings account.

Rates can vary throughout the year. Check the All Rates page for the most up-to-date rate information.