A Roth IRA is a great investment vehicle for retirement. The main benefit of the Roth IRA is that your earnings can be withdrawn tax-free and penalty free for specific distribution reasons, as long as you have met the 5 year holding period, which begins with the tax year for which your first contribution is made. However, unlike the Traditional IRA, the money you contribute to a Roth IRA is not tax deductible.

  • Benefits/Good To Know
  • Application Process
  • Tools
 

Benefits

  • Dividends are paid monthly
  • Ability to make contributions conveniently to your IRA variable account 
  • Ability to make contributions conveniently with payroll deductions
  • Distribution of funds is not mandatory and funds can still be contributed well past age 70½
  • Safe and secure investment vehicle
 
 

Good To Know

  • JSC FCU does not accept wire transfers to IRA accounts
  • Available in a variable savings account with a minimum deposit of $25
  • A minimum opening deposit of $500 for an IRA Share Certificate
  • Funds you contribute and earn can be withdrawn tax-free and penalty free, once the 5 year holding period is reached, and if one of the following qualified distributions apply:
  • You are at least age 59½
  • You become disabled
  • Funds are used for qualified medical expenses
  • Funds are used towards a first-time home purchase up to $10,000
  • Your death results in a distribution made to the account beneficiary (or your estate)

 

IMPORTANT INFORMATION REGARDING IRA ROLLOVERS:

The IRS has changed its long-standing position on the one-per-12 month rule for IRA rollovers. In the new IRS interpretation, an IRA owner may complete only one IRA rollover in any 12-month period, regardless of how many IRAs he/she owns.

Application Process

1. Open an IRA:
  • Complete the IRA application
    • Complete the application at any branch location
    • Complete the application via the IRA Center:
  • Beneficiary (s)
    • All applications may include a beneficiary(s).

      You will need each beneficiary’s:

      • Name
      • Address
      • Date of birth
      • Social Security Number
  • Fund the Account
    • Minimum to open an IRA variable is: $25.00
    • Minimum to open a IRA certificate is $500.00
2. Rollover or Transfer an IRA:
  • To begin the transfer you will need to complete/provide the following:

    • IRA application/Contribution (required)
    • Request to Transfer form
    • Name and address of the institution
    • A statement from your retirement plan
  • To begin the rollover you will need to complete/provide the following:

    • IRA application/Contribution (required)
    • Check payable to yourself
    • A statement from your retirement plan
3. Rollover, Transfers or Withdrawals:
  • IRA paperwork is required each time you make a rollover, transfer, or a withdrawal. For example you may want to rollover more funds from another institution to your IRA account that is already established with JSC FCU. You will still be required to complete IRA paperwork for any future transactions.

Tools

Planning Tools

Informed planning is one of the cornerstones of an effective retirement strategy.

On the retirement planning workbench below, you'll find a wide-variety of planning tools covering numerous aspects of retirement planning, from selecting the best type of IRA to designing a retirement income strategy that best fits your personal objectives.

Each planning tool includes a thorough introduction of the tool's purpose as well as a summary of the financial information you'll need to have available when using the tool. As you begin using your planning tools, be sure to check out the links on the right-hand side of your screen for specific recommendations on related information and tools that may also be helpful.

Beneficiary Planners

Are you an IRA beneficiary? If so, don't miss out on the significant tax-deferral options available to you. These tools will help you identify your distribution options, project future payments, and calculate required beneficiary distributions.

Beneficiary Options Calculator
The Payout Projections Calculator is designed to assist beneficiaries of deceased IRA owners in projecting future required distributions from the decedent's IRA.

Beneficiary Payout Calculator
The Beneficiary Payout Calculator is designed to assist beneficiaries of deceased IRA owners in calculating required distributions from the decedent's IRA.

Beneficiary Rollover Planner
Are you a beneficiary receiving a lump-sum distribution from an employer-sponsored retirement plan? This tool will help you identify the tax options available to you and compare the retirement income implications of your various alternatives.

Early Payout Planners (IRC Sec. 72(t))

Retiring early? These tools will help you structure payments that qualify for exemption from the 10 percent early distribution penalty tax, which typically applies to distributions taken before age 59½.

Comparison Projector Calculator
Use this tool to compare the three substantially equal periodic payment structures authorized by the IRS for avoiding the 10 percent early distribution penalty tax.

Distribution Calculator
After you’ve selected a payment method, use this tool to structure your substantially equal periodic payment plan.

IRA Selector Tools

What type of IRA is best for you based on your financial circumstances and retirement objectives? These tools help you weigh the pros and cons of Traditional and Roth IRAs from a variety of perspectives.

Basic Comparison Calculator
This straightforward tool helps you compare Traditional and Roth IRAs on the basis of projected (after-tax) retirement income.

IRA Eligibility Calculator
What type of IRA are you eligible for? This tool helps you determine your eligibility for making Traditional IRA or Roth IRA contributions.

Legacy Planning Calculator
This tool helps you measure the potential wealth accumulation implications of selecting a Traditional or Roth IRA for you and your beneficiaries.

Breakeven Analysis Calculator
Unsure of what your tax rates will be in 20 years? This unique tool helps you look at IRA selection from the standpoint of break even analysis (e.g., What if my effective tax rate in retirement is 30 percent rather than 25 percent?).

Retirement Savings Planner
It doesn’t matter whether your retirement is 3 years away or 40 years away; it's never too soon or too late to begin planning. This retirement savings tool will help you estimate how much savings you will need to accumulate in order to meet your retirement objectives.

Required Minimum Distribution (RMD) Planners

Approaching age 70½? Are you already in RMD status? These tools will help you understand the implications of the RMD rules and calculate withdrawals that meet the RMD requirements.

Comparison Projector Calculator
The Comparison Projector Calculator is designed to project future required distributions.

Distribution Calculator
The Distribution Calculator is designed to calculate required minimum distributions.

Rollover Planners

Receiving a lump-sum distribution from an employer-sponsored retirement plan? These tools will help you identify the tax options available to you and compare the retirement income implications of your various alternatives.

Plan Participant Calculator
Receiving a lump-sum distribution from an employer-sponsored retirement plan? This tool will help you identify your tax options and compare the retirement income implications of your various alternatives.

Roth IRA Conversion Tools

Should you consider converting some or all of your Traditional IRA assets to a Roth IRA? These tools help you weigh the pros and cons of a Roth IRA conversion from a variety of perspectives.

Basic Conversion Calculator
This straightforward tool helps you quantify the potential benefits of a Roth IRA conversion on the basis of projected (after-tax) retirement income.

Legacy Planning Calculator
This tool helps you measure the potential wealth accumulation implications of selecting a Roth IRA conversion (for you and your beneficiaries).

Breakeven Analysis Calculator
Unsure of what your tax rates will be in 20 years? This unique tool helps you look at a potential Roth IRA conversion from the standpoint of breakeven analysis (e.g., What if my effective tax rate in retirement is 30 percent rather than 25 percent?).

 
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