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IRAs Questions

Questions & Answers

Do you have SEP IRAs?

No, AgFed does not offer SEP IRAs.  However, we do offer Traditional and Roth IRAs.

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When can I access the funds in my Traditional IRA?

Funds in a Traditional IRA can be accessed any time after you reach the age of 59 1/2 without penalty.  Prior to age 59 1/2, distributions are subject to a 10% penalty by the IRS unless exempt because of one of the following reasons:

  • Disability or death
  • Qualifying medical expenses
  • Qualifying educational expenses
  • Unemployment, under certain conditions
  • Qualified first time home purchase
  • IRS Levy

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What is an IRA?

An IRA (Individual Retirement Arrangement) is a special domestic trust, custodial account or annuity contract established to hold assets for an individual's retirement.  The two types of IRAs are Traditional and Roth.  They have different tax implications for the individual investing. 

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I am turning 70 1/2 this year and need to take my Required Minimum Distribution. Can you help me with that?

Yes. In order to withdraw a required minimum distribution, you must complete an IRA Withdrawal Statement.  When you complete the form, simply select the Normal Distribution block.  We will calculate your distribution and process your withdrawal per your instructions.  IRA Withdrawal Statements may be obtained by contacting Member Services at 202-479-2270 or 800-368-3552 or visiting any AgFed branch.

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How much can I contribute to my IRA?

You may annually contribute 100% of your earned income up to $5500.00 for tax year 2013.  If you have reached age 50 during the tax year, you may also make an additional $1000.00 'catch-up' contribution.

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What is a Roth IRA?

A Roth IRA is a type of Individual Retirement Arrangement (IRA) established by the Taxpayer Relief Act of 1997.  A Roth IRA allows an individual to save money tax-free for retirement.  The withdrawals from this plan are tax-free as long as the individual is over 59 1/2 and the funds have been in a Roth IRA for at least five years.

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What do I need to do to establish an IRA at AgFed?

To establish an IRA, you must complete an application and return it to us with your initial contribution, transfer or rollover instructions (whichever applies).  Applications may be obtained by contacting Member Services at 202-479-2270 or 800-368-3552 or visiting any of our branch offices.

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I have recently left my employer and need to rollover my 401(k) into an IRA. Can I roll it over?

Yes.  We will accept rollovers from 401(k) plans into Traditional IRAs.  If you already have a Traditional IRA at AgFed, you simply need to complete a Traditional IRA Direct Rollover Request Form.  If you do not have a Traditional IRA at the Credit Union, you need to complete the Traditional IRA Simplifier.  Forms may be obtained by contacting Member Services at 202-479-2270 or 800-368-3552 or visiting any AgFed branch.

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I have some questions regarding IRAs. Can you help me?

Certainly. Please contact Member Services at 202-479-2270 or 800-368-3552 or visit any of our branches for assistance.  If you have questions specific to your financial situation, please contact your financial or tax advisor. 

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When can I access the funds in my Roth IRA?

Distributions from a Roth IRA can be taken at any time.  In order for withdrawals to be tax-free, the Roth IRA must be open for five years and you must meet one of the following criteria:

  • Be at least 59 1/2 years of age
  • Be out of work due to disability
  • Be using the distribution for a first time home purchase (up to $10,000)

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What happens to my Traditional/Roth IRA if I die?

In the event of your death, direct distribution of a Traditional or Roth IRA is made to your specified beneficiaries without being subject to probate.  If the primary beneficiary is your spouse, he/she has the option of assuming ownership of your Traditional or Roth IRA.

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Which types of IRAs do you offer?

We offer both Traditional and Roth IRAs. In addition, we offer Coverdell Education Savings Accounts, which were formerly known as Education IRAs. 

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