Retirement Accounts: Traditional and Roth IRAs
We offer a number of Traditional and Roth IRA investments, including IRA Savings and IRA Certificates with a variety of certificate terms that ensure guaranteed growth. Plus, we provide knowledgeable staff and friendly step-by-step assistance that members need to transfer their existing IRAs from other financial institutions or roll over assets from a qualified retirement plan.
- Investment options for both Traditional and Roth IRAs
- IRA Certificates offer guaranteed rate of return on terms from 3 – 60 months
- Catch-up contributions for individuals who attain age 50 before the end of the taxable year
Retirement is in your future. Let us help you get there.
Benefits of IRAs
Our Individual Retirement Accounts (IRAs) allow you to choose from a number of Traditional and Roth IRA investments, including IRA Savings and IRA certificates with benefits like:
- No set up fee
- Low minimum deposit to start saving for retirement
- Convenient payroll deduction or automatic transfer from an account for recurring deposits
- Transfer funds into your IRA online to make a current-year contribution
- Customized automatic withdrawals for Required Minimum Distributions
- Federally insured to $250,000 by the National Credit Union Administration (NCUA)
We offer both Traditional and Roth IRAs, each with different tax benefits.
Account Type | Traditional IRA | Roth IRA |
What is it? | A Traditional IRA allows you to make investments that will grow tax-deferred until you remove money from your account. Your contributions to a Traditional IRA may be tax-deductible depending on your participation in a workplace retirement plan and certain income limitations. Catch-up contributions for qualified individuals. | A Roth IRA allows you to invest money by making nondeductible after-tax contributions that grow tax-free. The key difference between a Roth IRA and a Traditional IRA is that, in a Roth IRA, money is not taxed when withdrawn for qualified distributions. Income limits apply. Consult a tax professional to determine if converting assets from a Traditional IRA will be beneficial for your long-term retirement savings plan. |
Who is it good for? | Individuals who qualify for a current tax deduction or who anticipate being in a lower tax bracket during retirement | Individuals who do not require or qualify for an immediate tax deduction. |
How do earnings accumulate? | Earnings accumulate on a tax-deferred basis. | All earnings accumulate tax-free. |
Rates |
Your tax adviser can offer more guidance on which type of IRA may be best for your needs. Of course, we are always here to answer your questions and assist you with opening an IRA. If you have a question, consult with one of our financial advisors or visit one of our branches to open an account. We also offer Wealth Management services for those interested.
Options For Existing IRAs
IRA Rollover
When you terminate employment you can elect to have your employer-sponsored retirement plan rolled over into an individual IRA you control.
IRA Transfer
You may transfer an existing IRA to another similar IRA. This is typically done to seek lower costs and consolidate assets.
Frequently Asked Questions
Opening an IRA at a credit union is a straightforward process that typically begins with becoming a member of the credit union if you aren’t already. Here’s what you’ll need to do:
- Choose your IRA type: Decide between a traditional IRA or a credit union Roth IRA based on your tax situation and retirement goals. Many members find using a retirement income calculator helpful in determining which option better suits their needs.
- Gather required documentation: This includes:
- Valid government-issued ID
- Social Security number
- Proof of address
- Initial deposit funds
- Employment information
- Complete the application: This can usually be done in person or online, depending on the credit union’s services.
- Set up contributions: Work with a representative to establish regular contributions, which you can optimize using a retirement plan contribution calculator.
Before opening an account, it’s wise to review your financial situation by creating a budget and determining how much you can consistently contribute to your retirement savings. Many credit unions offer resources on how to save money while balancing other financial obligations.
If you’re interested in opening an IRA with California Credit Union you can visit any of our convenient branch locations in Los Angeles and San Diego County. You can also visit our Become a Member page to find out if you qualify for membership.
Yes, the National Credit Union Administration (NCUA) protects IRA accounts, which provides federal insurance similar to what the FDIC offers banks. The NCUA insurance covers up to $250,000 per depositor for IRAs, separate from other accounts you might have at the credit union.
This federal insurance coverage includes the following:
- Traditional IRAs
- Roth IRAs
The NCUA insurance provides an essential safety net for your retirement savings, ensuring your funds are protected even if something were to happen to the credit union.
Credit union IRA rates typically outperform those offered by traditional banks, though specific rates vary by institution, account type and investment choice. Credit unions often provide more competitive rates since they’re not focused on generating profits for shareholders. Our rates at California Credit Union are competitive and often outpace other banks and credit unions.
Current rates for IRA accounts at credit unions might include:
- Fixed-rate certificates with terms ranging from 6 months to 5 years
- Variable-rate savings accounts
- Money market accounts with tiered interest rates
Keep in mind that savings rates can vary significantly between credit unions and account types. Some factors that influence rates include:
- The type of IRA (traditional vs. Roth)
- The term length for certificates
- The amount deposited
- Current market conditions
- The specific credit union’s policies
Please find all of our rates here.
Credit unions generally make transferring or rolling over funds from other retirement accounts simple. Whether you’re moving funds from another IRA, a 401(k) from a previous employer or another qualified retirement plan, the process is typically straightforward and can often be initiated with your chosen credit union’s assistance.
There are two main methods for moving retirement funds:
- Direct transfer: Funds move directly between institutions without you handling the money
- Rollover: Funds are distributed to you, and you must deposit them into the new account within 60 days to avoid penalties. Another option is a Direct Rollover from an employer plan, which moves funds directly from the employer plan to the credit union. This is a tax-free transfer of funds directly from the employer fund to the credit union.
When considering a transfer or rollover, keep in mind:
- Most credit unions have experienced staff to help guide you through the process
- There’s usually no cost to transfer funds into a credit union IRA
- You’ll need to decide whether to maintain your existing investment strategy or select new options
- The process typically takes a few weeks to complete
Before initiating a transfer or rollover, consult with a financial advisor to understand any tax implications that might apply to your specific situation. Many credit unions offer complimentary consultations to discuss your retirement savings options and help you make an informed decision about managing your retirement savings.
We offer several easy ways to move your assets tax-free from IRAs you hold at other financial organizations, investment firms, and rollovers from employer plans. Please give us a call at (800) 334-8788 ext. 4830 to get started or visit any of our convenient branch locations.
We’re here to take your financial confidence to the next level.
Dive into our Learn Center to explore various financial topics or to learn a little more about our practices.
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Wealth Management
Estimating Your Retirement Income Needs
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Banking Basics
Get a Smart Start
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Wealth Management
Approaching Retirement
Terms and Conditions
Programs (including but not limited to fees, rates, and features) are subject to change without notice. After an account is opened, dividend rate and APY may change at California Credit Union’s discretion. Fees may reduce earnings. The credit union does not offer tax advice, please contact a tax advisor.
