. . . by making the most of today.

Whether you're planning for retirement or education expenses, CU SoCal’s federally insured Individual Retirement Accounts (IRAs) allow you to maximize your long-term savings with either tax-deferred or tax-free earnings growth.

Why savvy savers in Southern California choose us to make it happen:

Competitive rates
Flexible terms
Low $25 opening balance
Unlimited contributions throughout term

Whatever the plan is for your future, make it happen with:

  • Minimum opening balances of $25.
  • Unlimited contributions throughout term.
  • Tiered dividends up to Unknown.
  • Terms from 12 to 60 months (only 12 months for Coverdell).

IRA Options

In addition to our IRA offerings below, we also provide non-insured investment IRA options through Investment Services.

  Traditional IRA1 Roth IRA1 Coverdell Education Savings Account IRA1
Consider if You would like to reduce your taxable income now, and you don’t plan on making withdrawals until retirement. You would like more flexibility for withdrawals, and you want your deposits and earnings to be tax-free at the time of withdrawal. You would like a tax-advantage account to save for a child's education expenses.
Tax Advantages

Reduces your taxable income this year.

 All earnings grow tax-free, and you don’t pay taxes when you withdraw money, when tax rates are typically higher than at the time of deposit. Earnings can grow tax free for eligible education expenses for a child.
Withdrawals Withdrawals are taxable income. Any withdrawals before age 59½ may include a 10% penalty. Withdrawals are mandatory at age 72. Contributions can be withdrawn anytime with no penalty or taxation. Earnings are tax-free if they've been in the account for 5 years and you are at least 59½. Funds can be withdrawn tax free for eligible education expenses including tuition, fees, books, supplies, equipment, special needs, room and board for minimum half-time students, and additional categories of K-12 expenses. Funds must be completely distributed by age 30.
Contributions Contributions may be fully or partially tax deductible. Anyone under age 70 ½ with earned income can contribute. Contributions are not tax deductible. Contributions can be made at any age. Eligibility is based on your income. Contributions are not tax deductible. Parents, family members, and others may contribute up to $2,000 annually for each child under the age of 18.

1. IRAs are separately insured from your other savings accounts for up to $250,000 by the National Credit Union Administration (NCUA), a government agency. For specific tax advice, please see a tax professional.

2. Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and Registered Investment Advisor. Products offered through CFS are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union Members.

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Traditional IRAs, Roth IRAs, and Coverdell Education IRAs

Term Minimum Opening Balance Minimum to Earn Dividend Dividend Rate APY1
12 month2 $25 $25 3.40% 3.45%
18 month $25 $25 3.30% 3.35%
24 month $25 $25 3.20% 3.25%
36 month $25 $25 3.06% 3.10%
48 month $25 $25 3.06% 3.10%
60 month $25 $25 3.35% 3.40%
1 APY is Annual Percentage Yield.
2 Coverdell Education IRAs are only available in 12-month terms.
IRAs are fixed accounts that will earn the stated dividend rate for the duration of the account term. A penalty may be imposed for early withdrawals.

Frequently Asked Questions (FAQs) for Individual Retirement Accounts (IRAs)

An individual IRA, also known as a traditional IRA, is a type of investment account that helps individuals save money specifically for retirement. It has unique requirements related to deposits and conditions for withdrawals of funds. CU SoCal offers IRA Savings accounts, even for minors!
A direct rollover IRA account is used when individuals want to move their employer-sponsored retirement plan, such as a 401(k), into an individual IRA. By transferring (“rolling-over”) the funds directly into a new account, taxes don’t need to be paid, as a transfer is different than a withdrawal (which would be taxable).
A CU SoCal Roth IRA can be set up at any time using after-tax money from your bank account. The Roth has unique characteristics. For example, you can make contributions to your Roth IRA after you reach age 70½. The IRS has specific rules regarding Roth IRAs. You cannot deduct contributions to a Roth IRA.
Traditional IRAs may be tax deductible under specific IRS conditions. IRAs may also be tax-free or tax-deferred (you don’t pay taxes until you withdraw the money).
It’s easy! Visit one of our convenient branch locations where an account representative will help you open an account. You must be a CU SoCal Member to open an IRA. Not a Member yet? Click here to join CU SoCal. Once your account is open, you can choose to contribute your money to any of the investment options available, including stock and bonds.
According to the Internal Revenue Service (IRS), there are limits to how much employers and employees can contribute to a plan (or IRA) each year. The plan must specifically state that contributions or benefits cannot exceed certain limits. The limits differ depending on the type of plan.
Yes, you can contribute to an employer-sponsored 401(k) program and contribute to your CU SoCal IRA at the same time. However, there are annual contribution limits to be aware of.
According to the IRS, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10% additional tax penalty. There are exceptions to the 10% penalty, such as if you use IRA funds to pay a medical insurance premium after a job loss.
A plan distribution before you turn 65 (or the plan’s normal retirement age, if earlier) may result in an additional income tax of 10% of the amount of the withdrawal. IRA withdrawals are considered early before you reach age 59½, unless you qualify for another exception to the tax.
There is no limit to the number of IRAs an individual can have. However, there are annual contribution limits to be aware of.
CU SoCal IRA benefits include tax-deferred or tax-free savings that can grow over time and the ability to choose to invest in funds that aren’t included in an employer-sponsored 401(k) plan.

Help for your path ahead

Whether you're looking for complete financial guidance, assistance with a specific goal, or just a second opinion, our certified financial planners are here to help.

Learn more

Make it happen.

If you live, work, worship or attend school in Los Angeles County, Orange County, Riverside County, or San Bernardino County, we can make your plans a reality. Call us at 866.287.6225 or email us at support@CUSoCal.org to open your CU SoCal IRA.

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Building Better Lives™

Credit Union of Southern California (CU SoCal) is a leading financial institution empowering those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County to reach their goals and build strong financial futures. CU SoCal provides access to convenient money management services and offers competitive rates and flexible terms on auto loans, mortgages, and VISA credit cards—turning wishing and waiting into achieving and doing.

 

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