Traditional IRA accounts are special accounts that allow your earnings to grow tax-deferred.
You are eligible for penalty-free withdrawals from your Traditional IRA once you are age 59½ or older. Once you reach age 70½ you must take a required minimum distribution (RMD) every year. At 70½, you are also no longer eligible to contribute to a Traditional IRA.
Traditional IRA accounts grow tax-deferred. Your contributions to a Traditional IRA are tax deductible based on your income. Your earnings also grow tax-deferred, meaning you only pay tax when you make a withdrawal. Thus, Traditional IRA accounts may be the best option if you need to reduce your current tax liability and think you’ll be in a lower tax bracket when you eventually withdraw money from the account.
Federally insured by NCUA up to $250,000 on all IRA products.
|Tax Year||Under Age 50||Age 50 and Over*||Last Date for Deposit|
Tax laws are subject to change. We are unable to provide financial advice but can answer questions on specific IRA products. Limits may be restricted based on your taxable compensation for the year. Early withdrawals may result in penalties and fees. Contact a tax professional for more details.
IRA SHARE ACCOUNT
|Minimum balance to earn stated APY**||Rate||APY**|
*Dividends on IRA share accounts are compounded and credited on a quarterly basis. The day of deposit/day of withdrawal (actual daily balance) method is used to calculate the dividends. This credit union will pay dividends on the full balance in the account whether deposits are made by cash or check. If you close your IRA account before your accrued dividends are credited, no dividends will be paid for that period. On all accounts dividends are paid from current income and available earnings at the end of a dividend period. Dividends rates and annual percentage yields may change from time to time on all credit union accounts. IRA accounts terms are controlled by the Truth in Savings and the Individual Retirement Custodial Account Agreement.
IRA SHARE CERTIFICATE
|Minimum Balance To Earn Stated APY**||RATE||APY**||Term|
|$500||0.996%||1.00%||1 Year CD|
|$500||2.231%||2.25%||3 Year CD|
|$500||2.722%||2.75%||5 Year CD|
If a certificate is withdrawn or transferred to another institution before the maturity date, there will be a 90-180 day interest penalty. The principle and accrued interest on the term share accounts will renew unless otherwise requested.
*The day of deposit/day of withdrawal (actual daily balance) method is used to calculate the dividends. This credit union will pay dividends on the full balance in the account whether deposits are made by cash or check. If you close your IRA account before your accrued dividends are credited, no dividends will be paid for that period. Dividends are credited at certificate term. Rate may change after account is opened and is subject to change at renewal term in case of auto renewed certificate. On all accounts dividends are paid from current income and available earnings at the end of a dividend period. Dividends rates and annual percentage yields may change from time to time on all credit union accounts. IRA accounts terms are controlled by the Truth in Savings and the Individual Retirement Custodial Account Agreement.
How can I establish an IRA account?
To establish an account, send a message through online banking, stop by the branch or give us a call and we will provide you with the necessary IRA account paperwork. You must be a NYU FCU member to set up the account. To learn more about joining, visit the NYU FCU Membership page.
Is there a penalty for withdrawing from my Traditional IRA before I retire?
The purpose of an IRA is to save for retirement, so this tax-advantaged savings vehicle is specifically designed to discourage investors from withdrawing funds before turning age 59½. If you do so, the IRS imposes a 10 percent penalty on top of the income taxes you pay on the withdrawal. There are some exceptions that allow early withdrawal without penalty, so please speak with a tax professional for more details.
I make too much money to qualify for an IRA tax deduction. Can I contribute to my traditional IRA?
Yes. There are no income limits to make contributions to a traditional IRA. Your ability to make deductions may be affected by filing status and your participation in an employer retirement plan.
When am I required to begin withdrawing money from my traditional IRA?
You must begin to annually withdraw a required minimum distribution (RMD) from your IRA once you turn 70½ years of age. RMD guidelines, set by the IRS, ensure that investors don't use an IRA as a permanent shelter from income taxes.
Can I name a beneficiary for my IRA?
Yes. There are specific rules and forms to ensure that your IRA funds are dispersed to your intended beneficiary, in case of death. You can use the Individual Retirement Account Beneficiary Designation/Change form to select your beneficiary.
Is there a limit on the number of IRA rollovers that can be done?
Yes. Effective January 1, 2015, the IRS imposed the new IRA Rollover rule which stipulates that an IRA owner may complete only one IRA-to-IRA rollover per 365 days, regardless of how many IRAs you own, without differentiating between Traditional, Roth and SEP IRAs. This change of only one rollover per year will only affect rollovers, and will not have any impact on trustee-to-trustee transfers. The once-per-365-day rule does not apply to the direct rollover of 401(k) funds to a Traditional IRA.