IRAs

• Must be employed to contribute to an IRA
• There is no maximum age for tax year 2020 contributions and beyond
• Maximum contribution for tax year 2020 for individuals under age 50 is $6,000.00. For individuals age 50 and older (no maximum age limit) the maximum contribution is $7,000.00 ($6,000.00 plus $1,000.00 catch up)
• Contributions may be tax deductible depending on income and if participant is in a workplace retirement plan
• Earnings grow tax deferred
• Withdrawals are taxable as “income” and may be subject to a 10% early withdrawal penalty by the IRS if withdrawn prior to attaining age 59½
• Required Minimum Distribution for those who reached age 70½ during or after 2020 will be required by April 1st following the year the IRA owner turns 72

• Must be employed to contribute to an IRA
• Maximum contribution for tax year 2020 for individuals under age 50 is $6000.00 For individuals age 50 and over, the maximum contribution is $7000.00 ($6000.00 plus $1000.00 catch up)
• Contributions are not tax deductible
• Earnings grow tax deferred and may be tax free upon withdrawal if eligibility requirements are met
• No required distributions
• Funds must remain in a Roth IRA for five years; participants must be age 59½ or older or meet exception requirements for withdrawal to be tax free

• Does not require earned income to contribute; however, if the individual contributing to the Coverdell IRA does have earned income, it must be within IRS Guidelines (refer to IRS Pub.590)
• Maximum contribution per child (age 18 or younger) per tax year is $2,000.00
• Contributions are not tax deductible
• Withdrawals are tax free if used to pay for qualified education expenses
• All funds in a Coverdell ESA must be distributed to the designated beneficiary by 30 days after attaining age 30
• Jeanne D’Arc Credit Union offers IRA Statement Savings Accounts, IRA Money Market Savings Accounts or IRA Certificates of Deposit for your retirement savings

• Must be self-employed or work for someone who is
• Employer must make contributions for all eligible employees
• Union employees, non-resident aliens or employees who received $600.00 or less in compensation during the year may be excluded from eligibility
• The same percentage of compensation must be contributed for all eligible employees
• Contributions are limited to 25% of compensation with a maximum of $57,000 for tax year 2020, and $58,000 for tax year 2021
• Contributions to a SEP IRA are made only by the employer and are a tax deduction only for the employer
• Contributions can be made up to the employer’s tax filing deadline, up to October 15 with a tax filing extension
• Each employee is always 100% vested in all contributions made to his or her SEP IRA

• A Trustee Transfer which is done between financial institutions, with the paperwork being initiated by the receiving financial institution. This is not a reportable transaction to the IRS.
• A Rollover is initiated when an individual makes a withdrawal by check from one IRA and deposits the funds into another IRA elsewhere within the 60 calendar day time limit. The IRS imposes a restriction of one rollover per individual per 365 days. This is a reportable transaction to the IRS and must be indicated on your tax return for the year in which the Rollover is processed. We can assist you with these transactions.

The best way to move funds from a former employer-sponsored retirement plan (i.e., 401(k), Profit Sharing, 457 Plan, etc.) to an IRA is by a Direct Rollover. A Direct Rollover is the direct payment of your vested interest in an employer-sponsored retirement plan to an IRA Trustee or Custodian for your benefit. You must initiate the rollover through the company that is handling your retirement plan. We can assist you in completing any documentation that is required by your former employer to initiate the process. Upon payout, you will receive a check from the employer plan manager that is made payable to “Jeanne D’Arc Credit Union FBO (for the benefit of) your name”. The check may either be mailed directly to Jeanne D’Arc Credit Union or to you. If the check is mailed to you, it is your responsibility to make sure the check is deposited into your Jeanne D’Arc IRA account.