Individual Retirement Accounts
Frequently Asked Questions
Contributions and distributions
Am I eligible to contribute to an IRA?
For a Traditional IRA any individual under the age of 70 1/2 is eligible to contribute to an IRA as long as they are earning qualified compensation or receiving alimony. For a Roth IRA any individual may contribute who is earning qualified compensation or receiving alimony that does not exceed specific income limitations.
Can I convert my Traditional IRA to a Roth IRA?
A "Roth Conversion" refers to any transaction in which all or part of the assets in a traditional IRA are moved to a Roth IRA. Depending on the specifics of your situation, a "Roth Conversion" may be considered a taxable event. You should consult your tax adviser for more information.
Can I transfer an IRA at another institution to Alaska USA?
Yes, you can transfer an IRA at another institution to Alaska USA. This is called a direct transfer. With a direct transfer funds are moved from financial institution to financial institution without the owner of the IRA having access to the funds. This type of transfer can be accomplished as often as desired.
Can I transfer my employer retirement plan to an IRA?
If the funds are coming from a qualified retirement plan (QRP) you are able to transfer them to a Traditional IRA by completing a Direct Rollover. Once you have verified through your employer that your current plan is a QRP, you may either establish a new Traditional IRA with the credit union or use your existing Traditional IRA and direct your employer to transfer your funds for you.
Can withdrawals be made over the phone?
Yes, IRA withdrawals can be performed by telephone via the Member Service Center. Since IRA withdrawals are reportable to the IRS, you will be required to sign the withdrawal/distribution form and select a withholding option.
How do I calculate my Required Minimum Distribution (RMD)?
How much can I contribute?
For the 2014 tax year, the maximum annual contribution is $5,500 ($6,500 for those 50 and older).
Please note that your contribution amount cannot exceed the amount of your earned income.
Is federal tax withholding required and how much do I have to specify?
No, withholding is not required. You may select your withholding options on the distribution form when requesting a withdrawal. If withholding is selected, the minimum amount is 10%. You may also wish to consult your tax advisor to determine the withholding amount that may apply to you.
Is my contribution tax deductible?
What are the tax penalties for early withdrawals?
What is a Required Minimum Distribution (RMD)?
What tax form is used to report contributions?
What tax form is used to report distributions?
What type of funds can be contributed to an IRA?
When are tax forms sent out?
When can withdrawals be made from an IRA?