Individual Retirement Accounts
Frequently Asked Questions
Are IRAs insured?
Yes, IRA accounts are insured up to $250,000 separate from other accounts that you maintain at Alaska USA. However, your Roth IRA will be added together with your Traditional IRA and insured in the aggregate to the maximum of $250,000. Due to their investment nature, managed and custodial IRAs opened through Alaska USA Trust Company are not insured or guaranteed and may lose value.
Can I borrow from an IRA?
No, you are not able to borrow from your IRA.
Can I convert my Traditional IRA to a Roth IRA?
The IRS uses the phrase "IRA conversion contribution" to refer to any transaction in which all or part of the assets in a traditional IRA are moved to a Roth IRA. If you are married and filing separate federal income tax returns then you cannot make an IRA conversion contribution during that year. If this is not your situation, then you can make an IRA conversion contribution during any year in which your modified adjusted gross income (MAGI) is $100,000 or less. If you file a joint income tax return with your spouse, then this limit is joint MAGI of not more than $100,000. Also, an IRA conversion contribution becomes taxable income for the tax year in which the contribution was made. You should consult your tax advisor for more information.
How do I know which type is the best for me?
It is best to consult your tax advisor or accountant, who can help you decide which IRA is best for your individual situation. Alaska USA employees are not licensed to offer tax advice to members and cannot recommend that you open a specific IRA type.
What investment options are available for IRAs?
Alaska USA Federal Credit Union offers insured Traditional and Roth IRAs, both available with variable (IRA savings) or fixed (IRA certificates) rates. Alaska USA Trust Company offers a variety of investments for Traditional and Roth IRAs; however, these accounts are not insured or guaranteed and may lose value.
What is the age requirement to establish an IRA?
There is no age requirement to establish an IRA. However, you must be earning qualified compensation to contribute to the IRA.
What is the difference between a Traditional and a Roth IRA?
Traditional IRA contributions may be tax-deferred. The funds used to make contributions may be deducted on your income tax return for the year the contribution is made (if you qualify to do so). You pay taxes on the contributions and earnings when the funds are withdrawn. Mandatory distributions are required from a Traditional IRA beginning the year you reach the age of 70 1/2. At that time contributions are no longer allowed. Roth IRA contributions are not tax-deferred. There are income limits for individuals wishing to establish a Roth IRA. There is no mandatory age at which the funds must be withdrawn from a Roth IRA, and as long as you are receiving qualified compensation you may continue to contribute. After the age of 59 1/2 all contributions and earnings withdrawn from a Roth IRA are tax-free, as long as the account has been open for five years.
What type of IRAs does Alaska USA offer?
Alaska USA offers Traditional, Roth and SEP (Simplified Employee Pension) IRAs.
Who is eligible to establish an IRA?
IRAs may be established by the individual or the individual's parent if the individual is under the age of 18. The individual must qualify for membership and be the primary owner of the account on which the IRA will be established.
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