• 713-232-7774

  • Office

  • 713-232-7122

  • Fax

  • info@southernfederalcu.org

  • Email

  • 713-232-7774

  • Office

  • 713-232-7122

  • Fax

  • info@southernfederalcu.org

  • Secure Email

  • +1(123) 456 567

  • support@copious.com

  • Manhattan Hall,

  • Copious Melbourne, New Yourk

  • 08:00 - 16:30

  • Monday to Saturday

IRA Accounts



  • Traditional IRAs
    • A Traditional IRA is a perfect investment vehicle for retirement, and is primarily used for individual savings. Your contributions are made up to a specified limit per year and in most cases, funds must remain on deposit until age 59+. Plus, the funds you contribute are usually tax deductible. Likewise, your earnings on the IRA account are not taxed until you begin withdrawals.

      SFCU Traditional IRAs offer these benefits:

      • Available in a savings account with a minimum deposit of $500
      • Dividends are paid quarterly
      • Ability to make contributions conveniently with payroll deductions
      • Perfect for reinvesting a 401K, Retirement Account or Rollover from a previous job
      • Contributions can be tax deductible (consult your tax advisor concerning your situation)
      • Funds you contribute and earn are subject to taxes at the time your begin withdrawn
      • Safe and secure investment vehicle

      Important Information Regarding IRA Rollovers The IRS has changed its long-standing position on the one-per-12 month rule fo 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.

  • Roth IRAs
    • 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 The main benefit of the Roth IRA is that your earnings can be withdrawn tax-free and penalty free for specific distribution reasons, as long as you have met the 5 year holding period, which begins with the tax year for which your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 deductable in the year funds are deposited.

      SFCU Roth IRAs offer these benefits:

      • Available in a savings account with a minimum deposit of $500
      • Dividends are paid quarterly
      • Ability to make contributions conveniently with payroll deductions
      • Funds you contribute and earn are not tax deductable
      • Distribution of funds is not mandatory and funds can still be contributed well past 70½
      • Safe and secure investment vehicle
      • Funds you contribute and earn can be withdrawal tax-free and penalty free, once the 5 year holding period is reached, and if the one of the following qualified distributions apply:

        • You are at least age 59 ½
        • 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)
        

  • Coverdell Education Savings Accounts
    • A Coverdell Education Savings Account (ESA) is an ideal account to help parents save toward expenses for their child's education. While funds deposited are not tax deductable, funds can be withdrawn tax-free and penalty free for qualified reasons.

      SFCU Coverdell Education Savings Accounts offer these benefits:

      • Available in a savings account with a minimum deposit of $500
      • Dividends are paid quarterly
      • Contributions up to $2,000 annually can be made until the child's 18th birthday (income limitations may apply)
      • Anyone can contribute to the account
      • Funds you contribute and earn are not tax deductable
      • Safe and secure investment vehicle
      • Funds you contribute and earn can be withdrawal tax-free and penalty tax-free as long as the funds are used for education expenses, such as the following:
      Tuition, fees, books, supplies, equipment, certain room and board, academic tutoring, special needs services, uniforms, transportation, internet access, etc.

      • While there are no specific withdrawal requirements, the funds must be used for the child's education expenses before age 30 (except for children with special needs)
      • Withdrawals not used for education expenses are subject to normal income tax plus a 10% penalty
      • Ability to made contributions conveniently with payroll deductions
      For additional information, please visit our IRA Resource Center or call us at 713-232-7774.    

  • Updating IRA Beneficiaries
    • Updating your regular membership account card does not cover your IRA account, so it is important that you review your beneficiaries annually to be sure your wishes will be fulfilled.

      Most members are not aware of the following issues regarding beneficiary designations:

      • IRAs are not governed by a member’s will. An IRA is a non-probatable asset; therefore it is not automatically covered in the owner’s will. Owners who would like the will to govern their IRA funds can accomplish this by naming their estate as the IRA beneficiary by writing “per my will” in the beneficiary designation.
      • There are default provisions in the IRA Agreement. If no beneficiaries are listed, or none of the listed beneficiaries qualify, then the IRA funds will be paid to the surviving spouse. If there is no surviving spouse, then the funds will be equally divided among the legitimate natural and legally adopted children. If there is no spouse and no children, then the funds will be paid to the owner’s estate.

      Some common reasons for beneficiary changes are

      • Marital Status
      • Birth or death in the family

      Beneficiary designations may be as follows:

      • Family/Friends
      • An Organization or Charity
      • A Trust or Estate
      Regardless of the reason for updating beneficiaries, the process is as simple as completing the appropriate form. Please call us at 713-232-7774 to receive your form and for any assistance you might need.