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 ensure your future is as comfortable as possible. 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.

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Build your savings annually

You can contribute up to $6,000 to your IRA each year (or $7,000 if you're age 50 or older) and continue to grow your savings over time.

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Security for your funds

Funds in your RBFCU IRA account are insured separately from other accounts and are federally insured up to $250,000 by the National Credit Union Association (NCUA).

$1 dollar bill

Low opening deposit

While you can deposit as much as you choose, only $1 is required to open your IRA account and begin building your savings.

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?


Contributor Eligibility + -

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.

Maximum Annual Contribution + -

Traditional

$6,000 or 100 percent of your earned income, whichever is less, for individuals under age 50. $7,000 or 100 percent of your earned income, whichever is less, for individuals over age 50.1

Roth

$6,000 or 100 percent of your earned income, whichever is less, for individuals under age 50. $7,000 or 100 percent of your earned income, whichever is less, for individuals over age 50.1

Tax Deductibility Status + -

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

Contribution Deadlines + -

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

Early Withdrawal Penalties + -

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
Tax-Deferral Benefits + -

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

Taxes on Dividends + -

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.

IRAs Calculators

  • 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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IRA
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Certificate - 1 year
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Certificate - 7 year
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IRAs FAQs

  • Can I take a loan from my IRA?
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    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.

  • How do I request an IRA distribution?
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    To request an IRA distribution, you can send a secure message through your Online Banking account. You can also contact us by phone or visit a branch.

  • Do I have to start taking IRA distributions at a certain age?
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    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.

  • What is an SEP IRA?
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    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.

  • How can I change beneficiaries on my IRA account?
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    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.

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