IRAs

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Save tax-deferred for your retirement with an Individual Retirement Arrangement (IRA).

Types of IRAs available at North County CU

  • Traditional IRA - Contributory, Transfer, and Rollover plans
  • Roth IRA - Contributory, Conversions from Traditional IRAs, Transfer and Rollover plans

Which is better for me, a Traditional IRA or a Roth IRA?

North County CU IRA features

  • No set-up or annual maintenance fees
  • Convenient deposits through payroll deduction and automatic transfers
  • Attractive rates, with higher rates for IRAs with larger balances
  • Funds insured by the National Credit Union Administration, a U.S. Government Agency

IRA Account options:

IRA Savings Account

Great when you don't want to lock-in your funds

  • Requires a minimum opening deposit of $100
  • Dividends are paid quarterly based on a daily balance of $100 or more

IRA Certificate Accounts

We offer three different IRA Certificates:

Fixed Rate IRA Certificates

  • Dividend rates are guaranteed until maturity and depend on the term you select
  • Minimum deposit amounts of $1,000, $50,000 & $100,000 available
  • Choose from terms ranging from 1 to 4 years
  • Dividends are compounded daily and paid quarterly and at maturity

Boost Certificates

  • Great for rising rate environment; if rates rise, you can "boost" your rate to the current rate without penalty or changing the terms of your certificate
  • Minimum deposit amounts of $1,000, $50,000 & $100,000 available
  • 5-year term only
  • Dividends are compounded daily and paid quarterly and at maturity

Variable Rate IRA Certificates (Traditional & Roth)

  • Rate is tied to the interest rate market instead of a fixed rate established by the credit union
  • Open with a minimum deposit of $1,000
  • 2 or 3-year terms available
  • Dividends are compounded daily and paid quarterly and at maturity

Traditional & Roth Requirements*

Traditional IRAs:

  • You must have earned income for the year and be younger than 70½ years
  • Individuals who do not participate in a pension plan at work, or who do participate and meet certain income guidelines, are eligible to make deductible contributions
  • Contribution limit for 2016 and 2017 is $5,500
  • Individuals age 50 and older can contribute an extra $1,000 each year to "catch-up"
  • Contribution limits cover both IRA options (e.g., for a $5,000 limit, you can put $3,000 in a Roth IRA and $2,000 in a traditional IRA, or $5,000 in one or the other, but not in both)
  • Most withdrawal are taxed as income
  • Most withdrawals before age 59½ result in a IRS penalty
  • Distributions are mandatory at age 70 1/2

Roth IRA:

  • Contributions are allowed if meet certain income guidelines
  • Contribution limit for 2016 and 2017 is $5,500
  • Individuals age 50 and older can contribute an extra $1,000 each year to "catch-up"
  • Contribution limits cover both IRA options (e.g., for a $5,000 limit, you can put $3,000 in a Roth IRA and $2,000 in a traditional IRA, or $5,000 in one or the other, but not in both)
  • At age 59½, earnings may be withdrawn tax free if the funds have been in the account for at least 5 years
  • Most withdrawals before age 59½ result in IRS penalties
  • Qualified "Special Purpose" distributions (of contributions and earnings) are allowed before age 59½ without tax penalty for qualified higher education expenses and for up to $10,000 towards a first time home purchase

Learn more about saving for and living in retirement.

Learn more about investment IRA options.

To open or for further information
Contact Us

*Check with your tax advisor or the Internal Revenue Service.