Individual Retirement Accounts (IRAs)
- Q: Can I open a Roth and Traditional IRA at the same time?
- A: Yes. You may be eligible to open both Traditional and Roth IRA accounts; however, you cannot exceed IRS contribution guidelines for the tax year in which you are making your contributions.
- Q: My spouse stays at home with the kids. Can he/she have an IRA?
- A: Yes, provided certain conditions are met. The working spouse must have earned the income he or she is contributing to both IRAs. In addition, spouses must file a joint tax return. The working spouse's total contribution to the IRA is limited by certain factors, such as the spouse's taxable compensation, contributions to a Traditional or Roth IRA and his or her age.
- Q: Are there joint IRA accounts?
- A: No, IRAs are issued to individuals only.
- Q: Can a minor have an IRA?
- A: Yes, if the child has earned income.
- Q: What is the difference between a transfer and a rollover?
A: Transfers move money from one account to another of the same type (for example, from a Traditional IRA to Traditional IRA or Roth to Roth, where the dollars move directly from one institution to another without the member ever having receipt of the funds). Members are allowed unlimited transfers from account to account. The IRS does not deem this a taxable event, so no tax forms will be sent.
A rollover involves moving funds from one type of qualified retirement plan to another type of qualified retirement plan. (The most common example is a 401(k) to a Traditional IRA). A rollover can also happen when funds are sent directly to the member and they have constructive receipt of the funds. They then have 60 days to roll the funds into either a new IRA or back into the IRA that they were originally taken from. Individuals are permitted one rollover per account per calendar year. This, however, is a taxable event, and you will receive tax forms for the withdrawal and for the rollover contribution.
Qualified Retirement Plan
Employer-sponsored retirement plans under section 401 of the Internal Revenue code; included are pension, profit sharing, 401(k) and HR-10 (Keogh) plans. Also known as tax-qualified retirement plan.
- Q: Can I transfer funds from my Traditional/Roth IRA mutual fund or annuity to a Traditional/Roth IRA Certificate/Savings at Thrivent Federal Credit Union?
- A: Yes. These are examples of a Traditional/Roth IRA transfer(s) (Mutual Fund or Annuity IRA to Thrivent Federal Credit Union IRA).
- Q: What happens at the maturity date of my IRA Certificate?
- A: There is a 10-day grace period following the maturity date of your IRA Certificate, during which you may add funds, remove funds, change the term, or close the IRA account. An IRA Certificate will automatically renew after the grace period is over, unless you direct us otherwise.
- Q: At what age do Required Minimum Distributions (RMDs) begin?
Required Minimum Distributions (RMD)
Amounts that participants in qualified retirement plans and owners of traditional individual retirement accounts (IRAs) must begin to receive by a specified age or time. Also known as minimum required distributions (MRD).
- Q: Does Thrivent Federal Credit Union calculate my RMD?
- A: Yes. We will automatically calculate the RMD if the IRA account was held at Thrivent Federal Credit Union as of 12/31 of the previous year, or we can manually calculate the RMD based on information supplied by you.
This information is not intended and should not be construed as legal, investment or tax advice. Please consult your attorney, tax advisor or other appropriate professional for such advice, including advice regarding the deductibility of contributions and advice on how this information applies to your individual circumstances. Thrivent Federal Credit Union cannot and does not guarantee the accuracy or completeness of this information or the applicability of it to your individual circumstances and does not bear any liability as a result of your reliance on this information.