Individual Retirement Accounts
Build income for the future
IRAs are a safe and secure option to save for your retirement and ensure your future is as comfortable as possible. With as little as $1, you start saving for your retirement. Opening an IRA with RBFCU is a great way to start saving simply and securely.
Build your savings annually
You can contribute up to $5,500 to your IRA each year (or $6,500 if you're age 50 or older) and continue to grow your savings over time.
Security for your funds
Funds in your RBFCU IRA accounts are insured separately from other deposit accounts and are federally insured up to $250,000 by the National Credit Union Association (NCUA).
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 advisor.
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?
TraditionalYou (or your spouse, if filing jointly) can contribute up to age 70½, as long as you have taxable compensation.
RothYou (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$5,500 or 100 percent of earned income, whichever is less. This can change based on your age.
Roth$5,500 or 100 percent of earned income, whichever is less. This can change based on your age.
Tax deductibility status
TraditionalTraditional IRAs may be tax-deductible, depending on your participation in a qualified retirement plan and your modified adjusted gross income (MAGI).
RothRoth IRAs are not tax-deductible.
TraditionalYou may make contributions each year until your tax return filing deadline. For example, you typically have until April 15 of the following year to make your contributions.
RothYou may make contributions each year until your tax return filing deadline. For example, you typically have until April 15 of the following year to make your contributions.
Early withdrawal penalties
TraditionalNone, if one of the following qualifications is met: • Over age 59½ • First-time home purchase • Health/disability emergency • Qualified education expenses
RothNone, if the money has been in the account for a minimum of five years and one of the following qualifications is met: • Over age 59½ • First-time home purchase • Health/disability emergency • Qualified education expenses
TraditionalGives you the opportunity to defer tax payments until you withdraw funds at retirement age.
RothAllows you to pay taxes now and withdraw funds tax free at retirement age.
Taxes on earnings
TraditionalEarnings are taxed upon withdrawal.
RothEarnings may be withdrawn at retirement age tax and penalty free.
Take the next step to invest in your IRA
An IRA is a powerful savings resource. Exploring your IRA investment choices to help manage your income may be the next step. In fact, your savings coupled with a reasonable rate of return may help increase longevity of your income.
How much can I contribute to an IRA?
Should I convert my IRA into a Roth IRA?
Am I saving enough for retirement?
What will my income be after I retire?
What will my expenses be after I retire?
Can I take a loan from my IRA?
You cannot take a loan from an IRA, but you can complete an early withdrawal from your IRA account. You may be able to complete these transactions without incurring a penalty, depending on the situation. For example, if you are over age 59½, are completing a first-time home purchase, if the IRA owner is disabled or dies, or if you are incurring qualified education expenses.
How do I request an IRA distribution?
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?
Owners of a traditional IRA have to begin taking a required minimum distribution (RMD) the year they turn 70½.
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.
What’s the difference between an RBFCU Investments Group IRA and an RBFCU IRA?
RBFCU Investments Group IRAs are invested in various product types including stocks, bonds, mutual funds and annuities. While an RBFCU Investments Group IRA offers you more potential for growth, it also carries some risk as products tied to the stock market can constantly change.
RBFCU IRAs are limited to the credit union’s products including IRA savings and IRA certificates. However, RBFCU IRAs are insured separately up to $250,000 from other deposit accounts by the National Credit Union Administration (NCUA). RBFCU Investments Group IRAs are not insured by the NCUA.
Contributions may be made to both Traditional and Roth IRAs Provided the $5,500 or 100 percent of earned income between the two is not exceeded. For taxpayers age 50 and older, an additional $1,000 can be contributed for a total contribution of $6,500 per tax year. Please consult a financial or tax advisor concerning your specific situation. Also known as adjusted gross income (AGI).
RBFCU Investments Group LLC is a wholly-owned subsidiary of RBFCU Services LLC. RBFCU Services LLC is affiliated with Randolph-Brooks Federal Credit Union (RBFCU).
RBFCU Investments Group Advisors are registered representatives of CUNA Brokerage Services, Inc. Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA / SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members.
Trust services available through MEMBERS Trust Company, a federal thrift regulated by the Office of the Comptroller of the Currency.
Not NCUA/NCUSIF/FDIC insured, May Lose Value, No financial institution guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. FR-2144748.1-0618-0720