IRAs - Individual Retirement Accounts | RBFCU - Credit Union

IRAs - Individual Retirement Accounts | RBFCU - Credit Union
Schedule an Appointment
ATMs & Locations
Rates
Apply for a Loan
Open an Account
Routing Number
314089681
Join
Find Your Next Car
Search New & Used Vehicles
Preferred Dealers
Loan Protection
GAP Plus
Mechanical Repair Coverage (MRC)
Credit Insurance
Home Loans & Realty
You found your dream home, now find financing that fits you
Mortgage Overview
Purchase
Refinance
Loan Options
Fixed-Rate
Adjustable-Rate
FHA & VA
Jumbo
New Construction
Land
100% Financing
100% Financing for Medical Professionals
First-Time Homebuyers
Home Equity/HELOC
Home Improvement
Homebuying & Selling Services
Realty Services
Title Insurance
Home Appraisal
Mortgage Retail Team
Retirement
Helping school employees plan for the future with confidence
Retirement Program Overview
Schedule an Appointment
403(b)
Roth 403(b)
457(b)
Roth 457(b)
RBFCU Freedom Retirement Plan
Enroll Online
Manage Your Account
Investments
Helping you invest in life's big moments
Investments Overview
Schedule an Appointment
Financial Advisors
Virtual Advisory Center
Investment Strategies
Financial Health Check
Wealth Management
Trust Services
Insurance
All the coverage you need in one place
Insurance Overview
Request a Quote
Homeowners Insurance
Auto Insurance
Personal Insurance
Business & Commercial Insurance
Health Care Plans & Insurance
Medicare Supplement Insurance Plans
Business
Earning your trust by serving your business
Business Overview
Business Loans
SBA Loans
Business Credit Card
Business Accounts
Business Checking
Business Services
Select Group Membership
Learn
Learn more, earn more, save more with RBFCU
Learn About Finances With RBFCU
Budgeting & Saving
Credit Scores & Credit Reports
Buying a Car & Vehicle Loans
Student Loans & Paying for College
Mortgage Loans & Homeownership
Investments & Financial Planning
Security & Fraud Center
Financial Education
Request a Financial Presentation
GreenPath Financial Wellness
Virtual Financial Coach
Financial Counseling & Education
Debt Management
Calculators
It's a Money Thing
Video Series
Junior Series - Ages 4-10
En Español
Seminars & Webinars
Youth Ambassador Program
FAQs
RBFCU Mobile
app
Download our app for a better mobile banking experience.
Get
IRAs — Individual Retirement Accounts
Build income for the future with Individual Retirement Accounts
IRAs are a safe and easy option to save for your retirement and build toward plans for a comfortable future. With as little as $1, you can start saving for your retirement. Opening an IRA with RBFCU is a great way to start saving simply and securely.
Build your savings annually
You can contribute up to $7,500 to your IRA each year (or $8,600 if you’re age 50 or older) and continue to grow your savings over time.
Security for your funds
Funds in your RBFCU IRA account are insured separately from other accounts and are federally insured up to $250,000 by the
National Credit Union Administration
(NCUA).
Low opening deposit
While you can deposit as much as you choose, only $1 is required to open your IRA account, earn the stated Annual Percentage Yield (APY) and begin building your savings.
To open an IRA or make changes to an existing IRA, please
visit an RBFCU branch
or contact us at
210-637-4242
for electronic options.
For questions about your specific financial situation, please consult
a financial or tax professional.
RBFCU offers both Traditional IRAs and Roth IRAs. Which one is right for you?
Traditional
Roth
Contributor Eligibility
Traditional
You or your spouse, if filing jointly, can contribute at any age, as long as you have taxable compensation.
Roth
You or your spouse, if filing jointly, can contribute at any age if you have taxable compensation and your Modified Adjusted Gross Income (MAGI) is below certain amounts.
Maximum Annual Contribution
Traditional
$7,500 or 100 percent of your earned income, whichever is less, for individuals under age 50. $8,600 or 100 percent of your earned income, whichever is less, for individuals over age 50.
Roth
$7,500 or 100 percent of your earned income, whichever is less, for individuals under age 50. $8,600 or 100 percent of your earned income, whichever is less, for individuals over age 50.
Tax Deductibility Status
Traditional
Contributions to a Traditional IRA may be tax-deductible, depending on your participation in a qualified retirement plan and your MAGI.
Roth
Contributions to a Roth IRA are not tax-deductible.
Contribution Deadlines
Traditional
Generally, the IRS allows you to make IRA contributions for the year prior up until the tax filing deadline, typically April 15.
Roth
Generally, the IRS allows you to make IRA contributions for the year prior up until the tax filing deadline, typically April 15.
Early Withdrawal Penalties
Traditional
None, if one of the following qualifications is met:
Over age 59½
First-time home purchase
Health/disability emergency
Qualified education expenses
Roth
None, if the money has been in the account for a minimum of five years and one of the following qualifications is met:
Over age 59½
First-time home purchase
Health/disability emergency
Qualified education expenses
Tax-Deferral Benefits
Traditional
Taxes are deferred until you withdraw funds from the Traditional IRA. When withdrawn, they are taxed at your taxable income rate.
Roth
Contributions to a Roth IRA originate from already taxed funds and can be withdrawn at any age tax free.
Taxes on Dividends
Traditional
Dividends may be subject to taxes upon withdrawal from a Traditional IRA at your taxable income rate.
Roth
Dividends from a Roth IRA are subject to taxes when the Roth IRA owner has not yet attained the age of 59½ AND the Roth IRA funds are less than five years old. After meeting these guidelines the dividends can be withdrawn tax free.
To open an IRA or make changes to an existing IRA, please
visit an RBFCU branch
or contact us at
210-637-4242
for electronic options.
IRA Forms
If you’re already a member and want to make a change to an existing IRA, like making a contribution, rolling over another account or choosing new distributions, please download the appropriate form below.
Traditional IRA Application
Roth IRA Application
IRA Rollover or Conversion Review
IRA Required Minimum Distribution Election Form
IRA Contribution Instructions
IRA Designation or Change of Beneficiary Form
IRA Distribution Form
Request for Transfer or Conversion to an IRA
Simplified Employee Pension (SEP) Plan Document
IRS Form W-4R Withholding Certificate for Nonperiodic Payments
For questions about your specific financial situation, please consult
a financial or tax professional.
IRA Calculators
How much can I contribute to an IRA?
Should I convert my IRA into a Roth IRA?
Am I saving enough for retirement?
What will my income be after I retire?
What will my expenses be after I retire?
IRA FAQs
Can I take a loan from my IRA?
The IRS does not allow loans against an IRA. One option IRA owners have to alleviate taxation and an IRS early withdraw penalty is to roll back a single distribution amount, in full, to an IRA within 60 calendar days. Any distribution amount not rolled back within 60 calendar days is subject to taxes and an IRS early withdraw penalty. All distributions and funds rolled back into the IRA are reported to the IRS and are included when filing taxes. The IRS allows this option only once in a 12-month calendar period.
How do I request an IRA distribution?
Although the intent of an IRA is to accumulate funds for retirement, IRA funds are accessible at any age*. IRA distributions may be requested at an
RBFCU branch
or by
phone
upon member verification. Requested distributions will be processed during business hours when proper documentation is received. IRA distributions are subject to taxes at the IRA owner’s tax bracket for the year funds are taken. RBFCU employees are not licensed tax advisors and are not able to determine the IRA owner’s tax liability.
*IRA distribution may be subject to IRS early withdraw penalty.
Do I have to start taking IRA distributions at a certain age?
Per IRS guidelines, when a Traditional IRA owner reaches Required Minimum Distribution (RMD) age, an annual distribution is required. Roth IRAs are not subject to an RMD.
What is an SEP IRA?
An SEP IRA is a Simplified Employee Pension Individual Retirement Account. This type of IRA is established by employers to make tax-deductible contributions on behalf of eligible employees.
How can I change beneficiaries on my IRA account?
Updates can be requested at an
RBFCU branch
or by
phone
upon member verification and completion of a new IRA Designation or Change of Beneficiary Form.
Upon the passing of an IRA owner, RBFCU pays the IRA funds based on the current
IRA Designation or Change of Beneficiary Form
you have provided.
Schedule an Appointment
Certificate Accounts
Savings Accounts
Auto Loans
RBFCU Dividend IRA accounts are insured up to $250,000 by NCUA and are separate from other deposit accounts.
The maximum IRA contribution limit is a combined total of all IRAs you may contribute to. Excess contributions are subject to penalties from the IRS.
It is recommended to consult a licensed tax advisor to determine the eligibility and benefits of contributing to a Traditional or Roth IRA.
Prior year IRA contributions require completion of an IRA Contribution Instructions form.
If not met, Traditional and Roth IRA funds may be subject to the IRS early withdraw penalty of 10 percent. It is recommended to consult a licensed tax advisor to determine how an IRA withdrawal may affect your taxable income for the year it is
withdrawn as RBFCU employees are not licensed tax advisors. IRA distributions will be processed during business hours when proper documentation is received.
Upon reaching Required Minimum Distribution (RMD) age, the IRS requires an annual distribution be taken from a Traditional IRA until the balance is depleted. No RMD is required from a Roth IRA, at any age.