Individual Retirement Accounts

Individual Retirement Accounts (IRAs) are designed to help you save for retirement. Some IRAs allow you to save without paying taxes on your funds until you begin to make withdrawals. Other IRAs offer tax exempt earnings. AltaOne offers members Traditional and Roth IRAs.
Minimum Opening Amount	IRA Savings: $100 (waived if funds are transferred via, Rollover or Transfer) IRA Certificates: $500 for Standard IRA Certificates, $5,000 for 18 month CD, $10,000 for 30 month CD
Annual Maintenance Fee	$15
Early Withdrawal Fee & Penalty	IRA Savings: None IRA Certificate: A penalty will be imposed if the member withdraws any of the principle funds in the IRA certificate before maturity (except for RMDs).¹
Contribution Maximums	Maximum individual limit $5,500 Maximum catch-up contribution limit $1,000
Dividends	Refer to our Rates page for current rates. Dividends are calculated on the daily balance and paid monthly. No dividends will be paid if the account was closed during the month.
Quality for Tax benefits	In many cases, the earnings are tax-deferred or tax exempt. Members should consult their tax advisers for details.

*According to the Economic Growth and Tax Relief Reconciliation Act of 2001, individuals who meet eligibility requirements may contribute up to the lesser of $4000 or 100% of earned income. Individuals age 50 or older may be eligible to contribute more than the regular amount.

**Consult your tax advisor
¹ The IRS may impose a 10% penalty if withdrawn before age 59 ½. Certain exceptions may apply. (A $20 fee will be charged if funds are transferred to another financial institution.)

Traditional IRA account contributions may be tax deductible. Member must have earned income in the tax year in which the contribution is made. Member may not make regular contributions in the year they reach age 70 ½ or older. Federal law allows individuals over 59 ½ to withdraw funds without penalty. Federal law mandates that individuals over 70 ½ withdraw a Required Minimum Distribution (RMD). Member has the option of waiving Federal and State tax withholding at time of distribution. Unless waived, a minimum of 10% Federal and 1% State (for CA residents) will be withheld for taxes. Catch up, spousal and SEP contributions are available.

Roth IRA account contributions are not tax deductible. The member must have earned income in the tax year in which the contribution is being made and can contribute beyond age 70 ½. Not subject to RMD distributions. Member is restricted to certain income limits for eligibility. Federal law allows individuals to withdraw contributions at any time without tax or penalty. Withdrawal of any interest earned must meet the qualified distribution standards in order to avoid tax and penalty. In order for a distribution to be Qualified, the IRA account must have been open for a minimum of 5 years and the owner must have reached the age of 59 ½. Tax free distributions of earnings may be taken prior to the owner reaching age 59 ½ if the distribution qualifies for an exemption (i.e. disability, first home purchase or death). These distributions are still subject to penalty if the IRA account does not meet the 5 year rule. Member has option of having Federal and State tax withheld. Catch up and spousal contributions are available. Start saving for your future with as little as $100. IRAs insured up to $250,000 per member.

Other Savings Account Options

Call or visit your nearest member service center for more information.