IRAs: TAX-ADVANTAGED RETIREMENT SAVINGS.

Individual Retirement Accounts

IRAs

Taking advantage of the tax benefits of an IRA can be a smart financial move. Whether you expect your career to last a few more decades, or you’re nearing retirement, an IRA can be a versatile financial solution to enjoy tax benefits* and boost your savings.

Even if you participate in a retirement plan through your employer, you can open an IRA for additional security. You can also roll over funds from previous employer-sponsored plans into an IRA to keep your tax-deferred dollars working for you.

Take more control over your finances.

Opening your account is easy. Apply now or contact us today. Our experts can help you select the best plan, optimize your savings, and even set up automated contributions. If you're new to IRAs, review your choices below.

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 72. (Members born on or before June 30, 1949 are still required to take their minimum distribution the year they turn 70½.)

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:

2022
$6,000 under age 50
$7,000 age 50 or older

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

2022
$6,000 under age 50
$7,000 age 50 or older

2023
$6,500 under age 50
$7,500 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
Seven calendar day grace period at maturity date with no Golden 1 penalties to withdraw from or close account
Federally insured by the NCUA

Open an Account

How Traditional IRAs work

Contributions to your IRA are tax-deductible up to a certain limit, which is generally $6,500 per year ($7,500 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.
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.

How Roth IRAs work

How IRAs work

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.
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:

2022
$6,000 under age 50
$7,000 age 50 or older

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

Contributions for 2022 made before April 18, 2023 may be tax deductible for the prior tax year.