Planning for your future is just as important as making your money work for you day to day. If you're using an IRA as a long-term saving tool, the following information can answer some common IRA related questions.
Please note that the following is for informational purposes only and is not intended as advice. Please consult your tax advisor for your specific situation.
IRA Contributions are subject to contribution limits and income limits set by the IRS. Consult your tax advisor to determine your limits and eligibility. Traditional IRA contributions are allowed until the year you reach age 70½. Roth IRA contributions are not subject to an age limit.
Between January 1 and April 15, IRA contributions can count toward either the current or previous tax year. If you'd like to make a contribution during this time frame, we'll need a signed form designating the tax year you select. Give us a call at 800.562.0999 or visit your nearest branch and we can help you get the paperwork started.
Any time you take a distribution from your IRA, we'll need a signed form with information about your preferred amount of tax withholding.
Please consult your tax advisor to determine if your distribution is qualified or how distributions will affect your tax situation.
Required Minimum Distributions on Traditional IRAs
If you have a Traditional IRA, mandatory distributions begin at age 70½. We'll send you a letter each year with your required minimum distribution amount, your distribution options and instructions on what we'll need to get everything rolling.
If you have a Roth IRA, there are no mandatory distribution requirements.
Rollovers and Direct Transfers
When you need to move funds from one IRA or tax-deferred plan to another, your options include a "rollover" or a "trustee-to-trustee transfer" (often called a direct transfer).
The rollover involves you taking a distribution from one IRA or plan, and making a contribution to another IRA or plan. It's important to make the contribution within 60 days of the distribution and for exactly the same amount, otherwise it may not be considered a complete rollover and tax implications and penalties may apply. The IRS allows one rollover per year – additional details here.
The trustee-to-trustee transfer option allows the financial institutions involved to transfer the funds directly without you needing to touch the money. If you'd like to directly transfer funds from another IRA or tax-deferred plan to WSECU, we can help. Give us a call at 800.562.0999 or visit your nearest branch.
Consult your tax advisor for advice on consolidating your retirement accounts and plans.