IRA Certificates

Social Security Provides Only a Small Fraction of Needed Retirement Income

Financial planners estimate you'll need 70-80% of your current income in order to maintain a comfortable retirement. An Individual Retirement Account (IRA) Certificate is a low risk option that can provide you peace of mind and the additional savings you'll need.

All Orange County's Credit Union IRA accounts offer no set-up, maintenance, annual, or distribution fee.

IRA Certificate features include:
  • Choose a term* from 6 months to 5 years
  • Open with a minimum of $1,000
  • Dividends are compounded daily and paid monthly
  • Automatic reinvestment**
  • NCUA insures up to the maximum amount currently $250,000. Coverage includes all IRAs held at the same institution.
  • Ability to select both deposit and investment products for your retirement assets

*Early withdrawal/account closure subject to penalty

**At maturity, account automatically renews for the same term as the previous term, at the rate in effect on the maturity date. Special Term Certificates renew at the nearest lower standard term. At maturity and during the grace period, you may change the term or balance of your account or make withdrawals without a penalty. The grace period begins at maturity and ends seven calendar days later.

Orange County's Credit Union Individual Retirement Account (IRA)

Do you have enough money set aside to be financially secure in your retirement years?

Bring your retirement savings goals to us and we'll work with you to identify the best savings plan for you. Whether it's an IRA savings or IRA Term Share Certificates we can help. View our current rate sheet add link.

Additional IRA investment vehicles are available through our licensed Financial Consultants.

We're always working to help you reach your financial goals and planning for retirement will typically be your most significant long-term goal. Annual contributions1 to an Individual Retirement Account (IRA) are one of the best ways to help keep your retirement assets working as hard as possible to prepare you for a rewarding retirement.

An Orange County's Credit Union IRA allows you to maintain your IRA contributions in an NCUA-insured IRA savings, IRA Money Market Account (IMMA), and/or an IRA Certificate of Deposit (CD). You may also choose to invest your contributions in stocks, bonds, mutual funds and more in a non-NCUA insured Investment Services retirement account.2

Other features of an Orange County's Credit Union IRA include:
  • Account can be opened in any Orange County's Credit Union branch.
  • Get your Orange County's Credit Union IRA with no annual fee.
  • Ability to select both deposit and investment products for your retirement assets.
  • NCUA insures up to the maximum amount currently $250,000. Coverage includes all IRAs held at the same institution.
  • Make contributions simply by scheduling them to occur automatically from your checking or savings account.
  • For more information, contact a Financial Consultant.

1 The IRS limits the amount you can contribute to your retirement account each year. Consult with your tax advisor for more information.

Disclaimer

2 Investment accounts may be suitable for investors who are willing to take on additional risk, assume the responsibility of closely monitoring their account and the paying of fees and charges that may apply to an investment account.

The content available on this site is provided for information purposes only, is not intended as an offer or solicitation for the purchase or sale of any financial instruments and should not be relied upon as an investment recommendation. For information regarding specific tax qualifications, please consult a tax advisor. Unless certain criteria are met, restrictions, IRS penalties, and income taxes may apply on withdrawals taken from retirement accounts prior to age 59 ½.

Securities, Insurance Products, and Investment Advisory Services offered through LPL Financial and its affiliates, member FINRA/SIPC and Registered Investment Advisor. Orange County Credit Union: not registered broker/dealer nor are they affiliated with LPL Financial.

This site is designed for U.S. residents only. The services offered within this site are available exclusively through U.S. Representatives. LPL Financial's U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

For information regarding specific tax qualifications, please consult a tax advisor. Unless certain criteria are met, restrictions, IRS penalties, and income taxes may apply on withdrawals taken from retirement accounts prior to age 59 ½.

Should I open a Roth IRA? Traditional IRA ? SEP IRA? These are questions many taxpayers ask.

Generally, a Traditional IRA may be beneficial if you're eligible to make deductible contributions and expect your tax rate during retirement to be lower than it is today. On the other hand, a Roth IRA may be a wise choice if you expect your tax rate to be the same or higher during retirement. A SEP IRA is a retirement plan designed to benefit self-employed individuals and small business owners.

The answer depends on each unique situation, and a Financial Advisor can help you choose an IRA that's right for you.

Learn More About Orange County's Credit Union IRAs.

Compare your IRA choices.1

Traditional IRA

Roth IRA

SEP IRA

What is the contribution limit for 2015?

100% of earned income up to $5,500 ($6,500 if eligible2 for a catch-up contribution) reduced by Roth IRA contributions

100% of earned income up to $5,500 ($6,500 if eligible2 for a catch-up contribution) reduced by Traditional IRA contributions

Contribution to the account may not exceed the lesser of 25% of the employee's compensation or $51,000

What is the contribution limit for 2016?

100% of earned income up to $5,500 ($6,500 if eligible2 for a catch-up contribution) reduced by Roth IRA contributions

100% of earned income up to $5,500 ($6,500 if eligible2 for a catch-up contribution) reduced by Traditional IRA contributions

Contribution to the account may not exceed the lesser of 25% of the employee's compensation or $52,000

Who is eligible?

Anyone with earned income who is under age 70½ in the contribution year

The 2015 contribution limit is phased out for those individuals who have a Modified Adjusted Gross Income (MAGI) between $107,000-$122,000 (single) and $169,000-$179,000 (married, filing jointly). For 2016, the phase-out ranges are $110,000-$125,000 (single) and $173,000-$183,000 (married, filing jointly).

Anyone that has earned income from being self-employed

What are the tax advantages?

Tax deferred3
Investment growth is tax deferred and you may be eligible for a tax deduction on your contributions. You won't pay taxes on deductible contributions or any earnings until you withdraw money.

Tax free4
Investment growth is tax free when withdrawn as part of a qualified distribution (as defined by the IRS).

Tax deferred3
Investment growth is tax deferred and you may be eligible for a tax deduction on your contributions. You won't pay taxes on deductible contributions or any earnings until you withdraw money.

Is my contribution tax deductible?

Replace the correct copy with the copy below. If you're covered by an employer-sponsored retirement plan, 2015 tax year contributions are fully deductible if your Modified Adjusted Gross Income (MAGI) is below $59,000 (single) and $95,000 (married, filing jointly). You'll get a partial deduction if your income is between $59,000-$69,000 (single) and $95,000-$115,000 (married, filing jointly). For 2016, the MAGI phase-out ranges are $60,000-$70,000 (single) and $96,000-$116,000 (married, filing jointly). If you're covered by an employer-sponsored retirement plan, but your spouse isn't, you may take a deduction for the contribution made to your spouse's IRA if, for 2015, your joint MAGI is no more than $178,000. The deduction is phased out for joint MAGI between $178,000-$188,000. For 2016, the deduction is phased out for joint MAGI between $181,000-$191,000. If neither spouse is covered by an employer-sponsored plan, the contributions are fully tax deductible, regardless of income level.

If you're covered by an employer-sponsored retirement plan, but your spouse isn't, you may take a deduction for the contribution made to your spouse's IRA if, for 2015, your joint MAGI is no more than $169,000. The deduction is phased out for joint MAGI between $169,000-$179,000. For 2016, the deduction is phased out for joint MAGI between $173,000-$183,000. If neither spouse is covered by an employer-sponsored plan, the contributions are fully tax deductible, regardless of income level.

No.
Your contribution is not tax deductible.

Yes
Up to contribution limits as stated above.

Is there an age limit for contributions?

Yes.
You must be under age 70½ in the contribution year to contribute. However, as long as you have earned income and your spouse is under age 70½ in the contribution year, you may make a contribution to your spouse's IRA.

No.

No.
As long are you have earned compensation you may contribute. However, if you are age 70 ½ or older you still must meet your required minimum distributions.

Are rollovers and transfers permitted?

Yes.
You may roll over5 or transfer to and from other Traditional IRAs, or qualified employer-sponsored plans.

Yes.
You may roll over5 or transfer to and from other Roth IRAs. You may also convert a Traditional IRA or roll over an employer-sponsored retirement plan to a Roth IRA.

Yes.
You may roll over5 or transfer to or from existing IRA, SEP IRAs or qualified employer-sponsored plans.

What are the withdrawal rules?

Withdrawals you make before you turn 59½ are generally subject to a 10% IRS penalty. You may make certain withdrawals free of IRS penalties before you turn 59½, including withdrawals to help pay for a first time home purchase (as defined by the IRS with a $10,000 lifetime limit) or for qualified higher education expenses (taxes apply to all earnings and all deductible contributions withdrawn). Other exceptions may apply. Distributions must begin by April 1 of the calendar year following the year in which you attain age 70½.

Earnings withdrawn as part of a qualified distribution are tax free4 and IRS penalty free. Qualified distributions are those taken after 5 years have passed since a Roth IRA was initially funded and the distribution is made: at age 59½ or older, upon death, for reason of disability (as defined by the IRS) or for a first time home purchase (as defined by the IRS with a $10,000 lifetime cap). Withdrawals of contributions at any time are tax free and IRS penalty free. Similar to Traditional IRA rules, withdrawals for qualified higher education expenses and first time home purchases prior to the 5-year holding period, are free of IRS penalties, even though they're not considered qualified distribution for purposes of taxation. Other exceptions may apply.

Withdrawals you make before you turn 59½ are generally subject to a 10% IRS penalty. You may make certain withdrawals free of IRS penalties before you turn 59½, including withdrawals to help pay for a first time home purchase (as defined by the IRS with a $10,000 lifetime limit) or for qualified higher education expenses (taxes apply to all earnings and all deductible contributions withdrawn). Other exceptions may apply. Distributions must begin by April 1 of the calendar year following the year in which you attain age 70½.

1 Information provided is as of September 2016.

2 Must be age 50 or older by December 31 of the contribution year.

3 Tax-deferred growth means the individual delays paying Federal income tax on earnings until money is withdrawn from the retirement plan.

4 Tax free means free from Federal income tax.

5 The IRS limits the frequency within which 60-day rollovers can be made between like IRAs. Refer to IRS Publication 590 for full details.