IRAs

An IRA is an Individual Retirement Account. It’s a great way to save for retirement.

Traditional IRA is tax deferred until the account owner takes a distribution from the IRA. When the money is withdrawn it’s taxed as regular income. Withdrawals are usually made after the owner reach age 59 ½. If money is withdrawn before that period, they will incur a 10% penalty payable to the IRS (unless specific circumstances apply). You must have working income in order to contribute to a Traditional IRA.

ROTH is an individual retirement account allowing a person to set aside a specific amount of money for after-tax income. Both earnings and withdrawals after age 59 ½ are tax-free, if you have met the 5-year rule.

If the rules are not followed then there may be a 10% tax penalty or other penalties.

Please read the IRS Publications for more information:

Publication 590 A – Contributions

Publication 590 B – Distributions

Difference between the Traditional & Roth IRA’s:

CARES Act Suspends IRA RMD Rules in or for 2020

The CARES Act allows you to suspend all required minimum distributions (RMD) for plan participants, IRA owners, and beneficiaries for 2020.     

Normally you would be required if you were:

The CARES Act has fortunately suspended this.  This suspension also applies to RMD if you turned 70½ last year and did not take your initial RMD.  This would have applied for 2019 and you were required to take before April 1, 2020.  Thanks to the CARES Act this also is not required.  

For 2021, RMD rules will be applied as if nothing ever happened in 2020.  Contact your tax advisor for more information about RMD relief.

If you have already taken your 2020 RMD, please contact us.  

If you are not going to take your RMD distribution for 2020, please contact our Member Services department.  Phone: (412) 205-5200 or (412) 461-3018 x 281, Email: memberservices@triboro-fcu.org

 


Education (Coverdell ESA) is a savings account that is set up for a trust or custodial that is solely for paying for qualified education expenses for a designated beneficiary of the account. You must name a designed beneficiary, under the age of 18, such as a child or grandchild when the account is established. It also must be designated a ESA at that time. Education expenses can consist of college, or certain elementary/secondary school education expenses. Qualified distributions are tax free. Contributions must stop at the beneficiaries 30th birthday.

Please read IRS Publication for more information:

Publication 970 – Tax Benefits for Education


IRA Services

IRA Type Maximum Contribution 2020 Maximum Contribution 2019 Interest Rates Dividends
Traditional IRA $6,000.00 (under age 50)
$7,000.00 (over age 50)
$6,000.00 (under age 50)
$7,000.00 (over age 50)
Variable rate can change anytime Compounded quarterly

IRA Type Maximum Contribution 2020 Maximum Contribution 2019 Interest Rates Dividends
Roth IRA

$6,000.00 (under age 50)
$7,000.00 (over age 50)

$6,000.00 (under age 50)
$7,000.00 (over age 50)
Variable rate can change anytime Compounded quarterly

IRA Type Maximum Contribution 2020 Maximum Contribution 2019 Interest Rates Dividends
Educational (Coverdell) IRA $2,000.00 Per Child $2,000.00 Per Child Variable rate can change anytime Compounded quarterly

*** Call for information on Rollovers, Direct Transfers, and Conversions ***


IRA Share Certificates (IRA CDs)

Similar to our regular Share Certificates you earn higher dividends on your IRA funds. The IRA Funds will be guaranteed a return for a specific locked term that you choose.

Consult your tax consultant or Accountant to see if you qualify.

This information is for general information only and is not intended to provide specific advice or recommendations for any individual. We suggest that you consult your attorney, accountant, financial or tax advisor with regard to your personal situation.


Rates

IRA Savings Account
TermAPR*APY**Minimum Balance

All IRA CD’s are auto renewing.

*APR = Annual Percentage Rate **APY = Annual Percentage Yield

IRA Savings Account 0.10% 0.10% None

IRA Certificate Rates
Effective Date: 6/8/2020
TermAPR*APY**Minimum Balance
12 Months 0.50% 0.50% $1,000.00
36 Months 0.80% 0.80% $1,000.00
60 Months 1.00% 1.00% $1,000.00

All IRA CD’s are auto renewing.

*APR = Annual Percentage Rate **APY = Annual Percentage Yield

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