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Traditional & Roth IRAs

Needs vary when it comes to selecting an IRA, depending on where you are in life and how you want your funds to be taxed after retirement. It’s never too late (or too early) to start planning for your future, so consider opening an IRA today!
 

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  • IRA bullet
    An Individual Retirement Account, or IRA, is one of the smartest, most tax-efficient ways to save for retirement.
  • Compare IRAs bullet
    Both Traditional and Roth IRAs offer substantial tax savings, but each has its own uses, advantages, and guidelines (see table below).
  • SI bullet
    Your accounts insured by the National Credit Union Share Insurance Fund to at least $250,000. Visit mycreditunion.gov to learn more about your Share Insurance Coverage and to access resources including a Share Insurance estimator tool, publications, videos, and more.

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Contributions

The maximum amount you can put aside annually for an IRA varies by the year in which your contributions are made, and is dependent upon your income and marital status. If you are turning 50 in the tax filing year, you can also benefit from additional catch-up contributions. IRA contributions must be made by your tax filing date.

 

Direct Transfers and Rollovers

Moving funds to an HVCU IRA from another qualifying plan is simple and may be processed as a transfer or rollover. You may want to consider consulting with a tax advisor to help decide which is best for you:

Direct Transfer- Funds are sent direct from another IRA to HVCU.

Direct Rollover- Funds are distributed from a qualified retirement plan and deposited into a comparable IRA plan.

Indirect Rollover- Funds are distributed directly to you and must be deposited into an IRA account within 60 days to avoid being taxed.

 

Beneficiaries

When establishing a new IRA plan you will designate your beneficiary and any additional shares under that plan will have the same beneficiary. If you wish to change your beneficiary on an existing plan, please complete the (IRA Designation of Beneficiary) form.

 

 

Compare Traditional & Roth IRAs

Traditional IRA Roth IRA
Maximum annual contributions allowed per individual
 
2019: $6,000
2020: $6,000

 
2019: $6,000
2020: $6,000

 

Maximum annual contributions allowed per married couple

2019: $12,000
2020: $12,000
2019: $12,000
2020: $12,000
Maximum catch-up contributions allowed per individual turning 50 in the taxable year
 
$1,000 $1,000
Who can contribute?
 
Individuals/spouses with earned income. Refer to IRS guidelines.
 
Individuals/spouses with earned income. Refer to IRS guidelines.
Are contributions tax deductible?
 
Contributions may be tax deductible. Refer to IRS guidelines. No, deposits are not tax deductible.
 
 
How long can I contribute?
 
No age limit, provided you our your spouse have earned income. No age limit, provided you our your spouse have earned income.
When are distributions allowed?
 
A penalty free distribution can be made upon reaching age 59 ½. 
 
Refer to IRS guidelines for other qualified distributions not limited to reaching age 59 ½.
A penalty free distribution can be made if the account has been opened for five successive tax years.
 
A penalty free distribution can be made upon reaching age 59 ½. 
 
Refer to IRS guidelines for other qualified distributions.
Are allowable distributions taxed?
 
Yes
Account is tax free if funds have been held for five successive years, or you reach age 59 ½.

Refer to IRS guidelines for other qualified distributions.
 
Are there specific withdrawal requirements?
 
If you reached age 70 1/2 prior to 12/31/19, you must begin or continue withdrawing funds.
 
If turning 70 ½ in 2020 you now have until age 72 before you must withdraw funds. The Requirement Minimum Distribution (RMD) age increased to age 72 effective 1/1/2020.
No, there are no withdrawal requirements.
 

Traditional & Roth IRA Savings Rate

APY
0.03%
Dividend Rate
0.03%
Minimum to Open
$0

View all rates and disclosures

Questions and Forms

Click here for IRA research and blank forms.  Forms can be sent to HVCU using the following delivery channels:
 

  • Drop off to any branch location
  • Secured email to securedmail.hvfcu.org
  • Faxed to (845) 463-1646
  • Mail to: Member Support Services, PO Box 1071, Poughkeepsie, NY 12602
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