An Individual Retirement Account (IRA) is a tax-advantaged savings account designed to help individuals save for retirement, making it an essential part of a comprehensive financial strategy. In Narmi Grow, your institution can offer IRAs to attract long-term deposits, encourage customer loyalty, and provide valuable financial planning services. At this time, IRAs are only supported on the Silverlake core. Please contact your Narmi Relationship Manager to enable IRAs or if your institution wants to use this feature on a different core.
The following conditions apply to IRAs in Narmi Grow:
For applications where the only product opened is an IRA, the joint applicant will not be included on the back end or in the application record/membership card, since joint applicants are not allowed on IRA accounts.
The joint applicant will be retained on the other products for applications where the IRA is opened in addition to other products. For example, if the primary applicant opens a CD and an IRA, the joint applicant will be retained on the CD but dropped from the IRA.
We encourage you to inform customers/members about the joint applicant conditions by adding information to the product details when configuring your IRA in Product List Manager.
Only one IRA product can be opened per application.
IRAs in Narmi
Your institution can decide which types of IRAs you want to offer and how many IRAs you want to offer. Narmi Grow supports most of the common types of IRAs, such as:
Traditional IRA – Allows pre-tax contributions, reducing taxable income in the contribution year, with taxes paid upon withdrawal in retirement.
ROTH IRA – Funded with after-tax dollars, allowing tax-free withdrawals in retirement if certain conditions are met.
There are three contribution types for IRAs, and the contribution type is required. When setting up your IRA product in Product List Manager, you can specify which of these contribution types will appear to applicants on the IRA contribution page of the Consumer Account Opening flow. The IRA contribution page is only visible if an applicant selects an IRA product from the Account selection page.
New contribution – A direct deposit of funds into your IRA account, subject to annual contribution limits set by the IRS. With this option, applicants fund the IRA directly within the account opening flow.
Transfer – A direct movement of retirement funds from one IRA to another of the same type without taking possession of the money, with no tax consequences or contribution limits. With this option, applicants cannot fund the IRA within the account opening flow. We encourage you to set up an email system or workflow to collect the applicant's funding information from their existing IRA that will be transferred.
Rollover – The movement of retirement funds from one retirement account to another (like from a 401(k) to an IRA) within 60 days, typically done when changing jobs or retiring. With this option, applicants cannot fund the IRA within the account opening flow. We encourage you to set up an email system or workflow to collect the applicant's funding information from their existing IRA that will be rolled over.
Adding an IRA Product
To add a new IRA product, go to Narmi Command, under Account opening > Product List Manager > Add a new product > IRA. For complete instructions, go to Add a New Product. You will specify the contribution types for each IRA product via What contribution types do you want to support?
IRA Selection and Contribution
Applicants can select one IRA product from the Account selection page in the Consumer Account Opening flow. For example, this flow offers a Traditional IRA and a ROTH IRA, but your institution can offer other options, such as tax-year specific accounts like 2024 Traditional, 2025 Traditional, 2024 ROTH, and 2025 ROTH, each as separate IRA products.
On the IRA contribution page, applicants see the contribution types associated with your IRA product—either New contribution, Transfer, or Rollover. If the applicant selects New contribution, the Funding page appears for them to specify a deposit amount and provide their bank account information. If the applicant selects Transfer or Rollover, the Funding page is skipped.
Once opened, applicants receive an email informing them an IRA account was opened. Your institution can configure the email in Narmi Command, under Institution settings > IRA Account Opened Email Template.
Users can view their IRA account in Narmi Banking via Accounts > Savings. For information on accessing accounts, go to Navigating to the Accounts Page.