IRAs — Individual Retirement Accounts
Build income for the future with Individual Retirement Accounts
IRAs are a safe and easy option to save for your retirement and build toward plans for a comfortable future. With as little as $1, you can start saving for your retirement. Opening an IRA with RBFCU is a great way to start saving simply and securely.
Savings accounts
RBFCU offers options to help you meet your financial goals, including savings accounts that yield guaranteed dividends. You can expand your savings horizons with higher-yield certificates, tiered-dividend or traditional Money Market accounts, or traditional or Roth IRAs.
For assistance with opening your IRA account, contact our IRA department. For questions about your specific financial situation, please consult a financial or tax professional.
If you’re already a member and want to make a change to an existing IRA, like making a contribution, rolling over another account or choosing new distributions, please download the appropriate form from our Forms Library.
RBFCU offers both Traditional IRAs and Roth IRAs. Which one is right for you?
Traditional
You or your spouse, if filing jointly, can contribute at any age, as long as you have taxable compensation.
Roth
You or your spouse, if filing jointly, can contribute at any age if you have taxable compensation and your Modified Adjusted Gross Income (MAGI) is below certain amounts.
Traditional
$7,000 or 100 percent of your earned income, whichever is less, for individuals under age 50. $8,000 or 100 percent of your earned income, whichever is less, for individuals over age 50.1
Roth
$7,000 or 100 percent of your earned income, whichever is less, for individuals under age 50. $8,000 or 100 percent of your earned income, whichever is less, for individuals over age 50.1
Traditional
Contributions to a Traditional IRA may be tax-deductible, depending on your participation in a qualified retirement plan and your MAGI.2
Roth
Contributions to a Roth IRA are not tax-deductible.2
Traditional
Generally, the IRS allows you to make IRA contributions for the year prior up until the tax filing deadline, typically April 15.3
Roth
Generally, the IRS allows you to make IRA contributions for the year prior up until the tax filing deadline, typically April 15.3
Traditional
None, if one of the following qualifications is met:4
- Over age 59½
- First-time home purchase
- Health/disability emergency
- Qualified education expenses
Roth
None, if the money has been in the account for a minimum of five years and one of the following qualifications is met: 4
- Over age 59½
- First-time home purchase
- Health/disability emergency
- Qualified education expenses
Traditional
Taxes are deferred until you withdraw funds from the Traditional IRA. When withdrawn, they are taxed at your taxable income rate.5
Roth
Contributions to a Roth IRA originate from already taxed funds and can be withdrawn at any age tax free.5
Traditional
Dividends may be subject to taxes upon withdrawal from a Traditional IRA at your taxable income rate.
Roth
Dividends from a Roth IRA are subject to taxes when the Roth IRA owner has not yet attained the age of 59½ AND the Roth IRA funds are less than five years old. After meeting these guidelines the dividends can be withdrawn tax free.
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How much can I contribute to an IRA?
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Should I convert my IRA into a Roth IRA?
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Am I saving enough for retirement?
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What will my income be after I retire?
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What will my expenses be after I retire?
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Can I take a loan from my IRA?
The IRS does not allow loans against an IRA. One option IRA owners have to alleviate taxation and an IRS early withdraw penalty is to roll back a single distribution amount, in full, to an IRA within 60 calendar days. Any distribution amount not rolled back within 60 calendar days is subject to taxes and an IRS early withdraw penalty. All distributions and funds rolled back into the IRA are reported to the IRS and are included when filing taxes. The IRS allows this option only once in a 12-month calendar period.
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How do I request an IRA distribution?
To request an IRA distribution, you can chat with a Member Service Representative through your Online Banking account. You can also contact us by phone or visit a branch.
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Do I have to start taking IRA distributions at a certain age?
Per IRS guidelines, when a Traditional IRA owner reaches Required Minimum Distribution (RMD) age, an annual distribution is required. Roth IRAs are not subject to an RMD.
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What is an SEP IRA?
An SEP IRA is a Simplified Employee Pension Individual Retirement Account. This type of IRA is established by employers to make tax-deductible contributions on behalf of eligible employees.
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How can I change beneficiaries on my IRA account?
To change a beneficiary on your IRA, complete an IRA Designation or Change of Beneficiary Form. Once you complete the form, you can
- mail it to RBFCU, Attn: IRA Department, P.O. Box 2097, Universal City, TX 78148-2097,
- fax it to 210-637-4510, or
- drop it off at your nearest RBFCU location.
RBFCU Dividend IRA accounts are insured up to $250,000 by NCUA and are separate from other deposit accounts.
1The maximum IRA contribution limit is a combined total of all IRAs you may contribute to. Excess contributions are subject to penalties from the IRS.
2It’s recommended to consult a licensed tax advisor to determine the eligibility and benefits of contributing to a Traditional or Roth IRA.
3Prior year IRA contributions require completion of an IRA Contribution Instructions form.
4If not met, Traditional and Roth IRA funds may be subject to the IRS early withdraw penalty of 10 percent. It's recommended to consult a licensed tax advisor to determine how an IRA withdrawal may affect your taxable income for the year it’s withdrawn as RBFCU employees are not licensed tax advisors.
5Upon reaching Required Minimum Distribution (RMD) age, the IRS requires an annual distribution be taken from a Traditional IRA until the balance is depleted. No RMD is required from a Roth IRA, at any age.
