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How to Guide: Establishing and Funding IRAs (Webinar Handouts)
 

How to Guide: Establishing and Funding IRAs (Webinar Handouts)

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There are many topics surrounding IRA's, from establishing the account to the year-end tax benefits. You and your members have questions, and we have the answers! During this free recorded webinar, we ...

There are many topics surrounding IRA's, from establishing the account to the year-end tax benefits. You and your members have questions, and we have the answers! During this free recorded webinar, we will educate you on the basics for both Traditional and Roth IRAs, including how to establish and fund IRAs for members. For more info: www.nafcu.org/ascensus

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    How to Guide: Establishing and Funding IRAs (Webinar Handouts) How to Guide: Establishing and Funding IRAs (Webinar Handouts) Presentation Transcript

    • Establishing and Funding IRAs
    • Learning ObjectivesAfter completing this session, you will be able to define the purpose and tax advantages of Traditional and Roth IRAs, identify the IRA contribution eligibility requirements, discuss the process for establishing an IRA application, discuss the IRA contribution limit and deadline, and discuss the process for documenting a contribution.
    • Introduction to IRAs©2012 Ascensus, Inc. Page 1
    • Introduction to IRAs I • Individual account • Cannot be owned by a nonperson entity©2012 Ascensus, Inc. Page 1
    • Introduction to IRAs I R • Individual Studies show account most members • Cannot be will need to rely owned by a on personal nonperson savings for 80 entity percent of their post-retirement income©2012 Ascensus, Inc. Page 1
    • Introduction to IRAs I R A • Individual Studies show • One application account most members = One IRA • Cannot be will need to rely • Account can owned by a on personal contain several nonperson savings for 80 investments entity percent of their post-retirement income©2012 Ascensus, Inc. Page 1
    • Introduction to IRAs©2012 Ascensus, Inc. Page 1
    • Introduction to IRAs Benefits to Account Holders Traditional IRA Roth IRA©2012 Ascensus, Inc. Page 1
    • Introduction to IRAs Benefits to Account Holders Traditional IRA Roth IRA Tax-deferred earnings©2012 Ascensus, Inc. Page 1
    • Introduction to IRAs Benefits to Account Holders Traditional IRA Roth IRA Tax-deferred earnings Regular contributions may be tax-deductible©2012 Ascensus, Inc. Page 1
    • Introduction to IRAs Benefits to Account Holders Traditional IRA Roth IRA Tax-deferred earnings Regular contributions may Earnings may be withdrawn be tax-deductible income tax-free©2012 Ascensus, Inc. Page 1
    • Contribution Eligibility©2012 Ascensus, Inc. Page 2
    • Contribution Eligibility Anyone may establish an IRA. Eligibility requirements may limit how much an individual may contribute to an IRA.©2012 Ascensus, Inc. Page 2
    • Contribution Eligibility Anyone may establish an IRA. Eligibility requirements may limit how much an individual may contribute to an IRA. Roth Traditional IRAs IRAs Earned income includes amounts derived from or received for personal services rendered (e.g. IRS Form W-2, Wage and Tax Statement, Earned Schedule C, Profit or Loss From Business if self- Income employed, or Schedule F, Profit or Loss From Farming.©2012 Ascensus, Inc. Page 2
    • Contribution Eligibility Wages Tips Rental Income Taxable alimony Bonuses Unemployment compensation Dividends Combat pay Separation & early retirement Child support Professional fees Interest Commissions AFDC & TANF* Disability pay Salaries Royalties* Social Security©2012 Ascensus, Inc. Page 2
    • Contribution Eligibility Earned Income Not Earned Income Wages Interest Salaries Royalties* Tips Dividends Bonuses Rental Income Taxable alimony Unemployment compensation Commissions Disability pay Professional fees Child support Combat pay Separation & early retirement AFDC & TANF* Social Security©2012 Ascensus, Inc. Page 2
    • Contribution Eligibility Traditional IRA • Earned Income • Age – An account holder must not attain age 70½ or older any time during the year for which the contribution is made. Note: Once the account holder reaches age 70½, they must begin removing assets from the IRA. This is called a required minimum distribution (RMD).©2012 Ascensus, Inc. Page 3
    • Contribution Eligibility Roth IRA • Earned Income • Income Limit – An account holder’s modified adjusted gross income (MAGI) must not exceed the IRS limits.©2012 Ascensus, Inc. Page 3
    • Apply Your Knowledge: Contribution Eligibility 1. Meredith is single, 35, and works as a doctor. She receives earned income of $80,000 per year. Can Meredith make a contribution to a Traditional IRA? (Yes or No) [Yes]©2012 Ascensus, Inc. Page 3
    • Apply Your Knowledge: Contribution Eligibility 2. Derek is married, 38, and is a mechanic. He and his wife file a joint federal income tax return. Their combined earned income is $84,000 per year and they have a combined MAGI of $90,000 per year. Can Derek contribute to a Roth IRA? (Yes or No) [Yes]©2012 Ascensus, Inc. Page 3
    • Apply Your Knowledge: Contribution Eligibility 3. George is single, 75, and is a maintenance worker. He has earned income of $35,000 per year. Can George contribute to a Traditional IRA? (Yes or No) [No]©2012 Ascensus, Inc. Page 3
    • Establishing an IRA©2012 Ascensus, Inc. Page 4 ©2012 Ascensus, Inc.
    • Establishing an IRA The first step in establishing an IRA with the prospective account holder is to provide information without giving tax advice. • Explain the rules, but do not apply the rules to the individual’s situation. • Identify the type of IRA the individual wishes to establish, describe investment options available at the credit union, etc.©2012 Ascensus, Inc. Page 4 ©2012 Ascensus, Inc.
    • Establishing an IRA The first step in establishing an IRA with the prospective account holder is to provide information without giving tax advice. • Explain the rules, but do not apply the rules to the individual’s situation. • Identify the type of IRA the individual wishes to establish, describe investment options available at the credit union, etc. Second, to establish the IRA, the credit union must provide the following documents:©2012 Ascensus, Inc. Page 4 ©2012 Ascensus, Inc.
    • Establishing an IRA Optional Document • Application (required by some financial organizations) Required Documents • Plan Agreement • Disclosure Statement • Financial Disclosure Regulatory Document • Truth-in-Savings Disclosure©2012 Ascensus, Inc. Page 4 ©2012 Ascensus, Inc.
    • Establishing an IRA To accurately administer the IRA, the application requests the account holder’s • Legal name, taxpayer identification number, address and date of birth.©2012 Ascensus, Inc. Page 4 ©2012 Ascensus, Inc.
    • Required Documents©2012 Ascensus, Inc. Pages 8 - 9
    • Required Documents The plan agreement serves as the “contract” between the credit union and the individual for whom the IRA is created.©2012 Ascensus, Inc. Pages 8 - 9
    • Required Documents When establishing an IRA, the credit union must provide an up-to-date disclosure statement, which explains the IRA rules in nontechnical language.©2012 Ascensus, Inc. Pages 8 - 9
    • Required Documents The credit union must provide financial projections as part of the disclosure statement. • helps account holders visualize their IRA investment growth, and • allows account holder to compare investments©2012 Ascensus, Inc. Pages 8 - 9
    • Apply Your Knowledge: Establishing an IRA 1. When completing the application the account holder is required to name beneficiaries (Yes or No). [No]©2012 Ascensus, Inc. Page 9
    • Apply Your Knowledge: Establishing an IRA 2. The account holder must sign the application to establish the IRA (Yes or No). [Yes]©2012 Ascensus, Inc. Page 9
    • Apply Your Knowledge: Establishing an IRA 3. What are the five documents that are required to be given to the account holder upon the opening of an IRA? [Copy of Signed Application, Plan Agreement, Disclosure Statement, Financial Disclosure and TIS]©2012 Ascensus, Inc. Page 9
    • Apply Your Knowledge: Establishing an IRA 4. How often must the financial disclosure be given to the account holder? [Once]©2012 Ascensus, Inc. Page 9
    • IRA Contributions©2012 Ascensus, Inc. Pages 10 - 11
    • IRA Contributions Contribution Limit Traditional and Roth IRA Aggregate Annual Regular Contribution Limits Additional “Catch-Up” Contribution Annual Regular Tax Year for Account Holders Age 50 and Contribution Limit Older 2012 $5,000 $1,000 ($6,000 total) Example: Contribution Limit Kevin, age 54, has a Traditional and a Roth IRA at ABC Credit Union. Assuming he is eligible to contribute to both IRAs, he could contribute $3,000 to his Traditional IRA and $3,000 to his Roth IRA for tax year 2012.©2012 Ascensus, Inc. Pages 10 - 11
    • IRA Contributions Contribution Limit vs. Individual Contribution Limit If the IRA owner’s earned income is lower than the annual contribution limit, the IRA owner may be eligible to contribute up to 100 percent of their earned income. Example: Individual Limit Julie, age 19, is a single college student who earned $2,500 working in the university bookstore for tax year 2012. Even though the IRS contribution limit is $5,000, her individual limit will be $2,500.©2012 Ascensus, Inc. Pages 10 - 11
    • IRA Contributions©2012 Ascensus, Inc. Page 11 ©2012 Ascensus, Inc.
    • IRA Contributions Spousal Contribution Limit A married account holder who does not earn any or earns minimal earned income and files a joint federal income tax return for a year can treat the couple’s joint earned income as their own for purposes of determining the maximum contribution limit.©2012 Ascensus, Inc. Page 11 ©2012 Ascensus, Inc.
    • IRA Contributions Spousal Contribution Limit A married account holder who does not Husband’s Earned Income earn any or earns minimal earned + Wife’s Earned Income income and files a joint federal income = Total Earned Income tax return for a year can treat the couple’s joint earned income as their own for purposes of determining the maximum contribution limit. Husband’s Wife’s IRA IRA Contribution Contribution©2012 Ascensus, Inc. Page 11 ©2012 Ascensus, Inc.
    • IRA Contributions Example: Spousal Contribution Limit Kim and Matt, both 35, are married. Matt is Husband’s Earned Income in graduate school and has no earned + Wife’s Earned Income income, and Kim is a dentist. As long as = Total Earned Income Kim and Matt file a joint federal tax return, Matt can use Kim’s earned income to contribute to his Traditional IRA. If Kim earns at least $10,000 in 2012, then they Husband’s Wife’s IRA can both contribute $5,000 to their own IRA Contribution Contribution IRAs for 2012.©2012 Ascensus, Inc. Page 11 ©2012 Ascensus, Inc.
    • Apply Your Knowledge: Contribution Limit 1. Edward was born on December 30, 1964. What is his aggregate contribution limit for 2012? [$5,000]©2012 Ascensus, Inc. Page 12
    • Apply Your Knowledge: Contribution Limit 2. Elise was born on April 19, 1962. What is her aggregate contribution limit for 2012? [$6,000]©2012 Ascensus, Inc. Page 12
    • Contribution Deadline©2012 Ascensus, Inc. Page 12 - 13
    • Contribution Deadline A current-year regular contribution can be made beginning on January 1 of that year. The deadline to make regular contributions for a year is the deadline for filing that year’s federal income tax return, generally April 15.©2012 Ascensus, Inc. Page 12 - 13
    • Contribution Deadline 2012 2013 January 1 December 31 A current-year regular contribution can be made beginning on January 1 of that year. The deadline to make regular contributions for a year is the deadline for filing that year’s federal income tax return, generally April 15.©2012 Ascensus, Inc. Page 12 - 13
    • Contribution Deadline 2012 2013 January 1 December 31 April 15 A current-year regular contribution can be made beginning on January 1 of that year. The deadline to make regular contributions for a year is the deadline for filing that year’s federal income tax return, generally April 15.©2012 Ascensus, Inc. Page 12 - 13
    • Contribution Deadline Current Year 2012 2013 January 1 December 31 April 15 A current-year regular contribution can be made beginning on January 1 of that year. The deadline to make regular contributions for a year is the deadline for filing that year’s federal income tax return, generally April 15.©2012 Ascensus, Inc. Page 12 - 13
    • Contribution Deadline Current Year Prior Year 2012 2013 January 1 December 31 April 15 A current-year regular contribution can be made beginning on January 1 of that year. The deadline to make regular contributions for a year is the deadline for filing that year’s federal income tax return, generally April 15.©2012 Ascensus, Inc. Page 12 - 13
    • Contribution Deadline Prior-Year Regular Contributions April 15 Under federal guidelines, the instruction to attribute a contribution to the prior year must be in writing and is irrevocable. • If there is no written instruction, assume the regular contribution is for the current year. • A prior-year regular contribution cannot be changed to a current- year regular contribution.©2012 Ascensus, Inc. Page 12 - 13
    • Apply Your Knowledge: Contribution Deadline 1. What is the last date on which Henry can make a contribution for tax year 2012? [April 15, 2013]©2012 Ascensus, Inc. Page 12
    • Apply Your Knowledge: Contribution Deadline 2. If Henry makes his 2012 contribution on February 12, 2013, what methods can he use to provide the written direction for a prior-year contribution? [Any written instruction method accepted by the credit union]©2012 Ascensus, Inc. Page 12
    • Q&A and Contact InformationPaul Kern CIS, CIP, CISPpaul.kern@ascensus.com608-229-1794http://www.nafcu.org/ascensus
    • Establishing and Funding IRAs Thank you for attending!
    • Establishing and Funding IRAs
    • Learning ObjectivesAt the completion of this session you will be able to define the purpose and tax advantages of Traditional and Roth IRAs, identify the IRA contribution eligibility requirements, discuss the process for establishing an IRA, discuss the IRA contribution limit and deadline, and discuss the process for documenting a contribution. Icon Activity Refer to Job Aids section of the material. Indicates a group exercise. Personal Objective(s) I am attending this session so that upon completion I will be able to________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
    • Introduction to IRAs Definition of an IRA I__________________ The IRA is an individual account, which means that it can only be owned by one account holder. A nonperson entity (e.g., a trust) cannot own an IRA, but a nonperson entity may be named as an IRA beneficiary. R_________________ Post-Retirement Income Studies show most members will need to Other Resources rely on personal savings for up to 80 20% percent of their post-retirement income. Personal Savings Source: www.ssa.gov (Including IRAs) 80% A_________________ One application = One IRA An IRA may contain several investments. Benefits to Account Holders What are the benefits to the account holder? Earnings are always tax-deferred. Account holder does not receive an IRS Form 1099-INT, Interest Income for earnings on an IRA. Traditional IRA contributions may be tax deductible. Roth IRA earnings may potentially be withdrawn income tax-free.Establishing and Funding IRAs 1 © 2012 Ascensus, Inc.www.ascensus.com
    • Contribution Eligibility Anyone may establish an IRA. Eligibility requirements may limit how much an individual may contribute to an IRA. Account holders are responsible for determining if they are eligible to make regular contributions. The account holder must have earned income during the year for which the regular contribution is made. Earned income includes amounts derived from or received for personal services rendered (e.g. IRS Form W-2, Wage and Tax Statement, Schedule C, Profit or Loss From Business if self-employed, or Schedule F, Profit or Loss From Farming. Sources of Income Earned Income Not Earned Income Wages Interest Salaries Royalties* Tips Dividends Bonuses Rental Income Taxable alimony Unemployment compensation Commissions Disability pay Professional fees Child support Combat pay Separation & Early retirement AFDC & TANF** Social Security *Whether royalties are considered earned income is dependent on several factors. **Aid to Families with Dependent Children and Temporary Assistance for Needy FamiliesEstablishing and Funding IRAs 2 © 2012 Ascensus, Inc.www.ascensus.com
    • Traditional IRA Eligibility Anyone who meets both the following requirements is eligible 70½ Year: The 70½ year is to make contributions to a Traditional IRA. the year in which a person reaches 70½ years of age. Earned Income For people born between January 1 and June 30, the Age – An account holder must not attain age 70½ 70½ year will be the year or older any time during the year for which the th of their 70 birthday. For contribution is made. those born between July 1 and December 31, the 70½ Once the account holder reaches age 70½, they must begin year will be the year of st removing assets from the IRA. This is called a required their 71 birthday. minimum distribution (RMD). Roth IRA Eligibility Modified Adjusted Gross Income (MAGI): MAGI is Anyone who meets both the following requirements is eligible an individual’s adjusted to make contributions to a Roth IRA. gross income without taking into account Traditional IRA deductions, Earned Income student loan interest Income limit – An account holder’s modified deductions, tuition and adjusted gross income (MAGI) must not exceed the fees deductions, certain foreign income and foreign IRS limits. housing exclusions and deductions, certain Series MAGI Limits for Regular Roth IRA Contributions EE bond interest exclusions, adoption expense exclusions, and Apply Your Knowledge: Contribution Eligibility domestic production activities deductions. 1. Meredith is single, 35, and works as a doctor. She receives earned income of $80,000 per year. Can Meredith make a contribution to a Traditional IRA? (Yes or No) 2. Derek is married, 38, and is a mechanic. He and his wife file a joint federal income tax return. Their combined earned income is $84,000 per year and they have a combined MAGI of $90,000 per year. Can Derek contribute to a Roth IRA? (Yes or No) 3. George is single, 75, and is a maintenance worker. He has earned income of $35,000 per year. Can George contribute to a Traditional IRA? (Yes or No)Establishing and Funding IRAs 3 © 2012 Ascensus, Inc.www.ascensus.com
    • Establishing an IRA The first step in establishing an IRA with the prospective account holder is to provide information without giving tax advice. Explain the rules, but do not apply the rules to the individual’s situation. Identify the type of IRA the individual wishes to establish, describe the IRA investment options available at the credit union, etc. Second, to establish an IRA, the credit union must provide the following four documents. Plan agreement, disclosure statement, financial disclosure and Truth-In-Savings. Note: Most credit unions require a member to complete an application when establishing an IRA. Completing the IRA Application Ascensus Traditional IRA Application (Form 2300-T) Note: In today’s training we are going to use the Traditional IRA application. The concepts for completing the Roth application are similar. To accurately administer the IRA, the application requests the account holder’s legal name, taxpayer identification number, address and date of birth.Establishing and Funding IRAs 4 © 2012 Ascensus, Inc.www.ascensus.com
    • Beneficiary Designation When establishing the IRA, the account holder may wish to designate beneficiaries. Account holders are not required to name beneficiaries while completing the application, but most will want to. While completing the application in IRAdirect, there are three levels of available beneficiaries. Primary Beneficiary – receives first consideration for receiving the IRA assets after the account holder’s death. Secondary (or Contingent) Beneficiary – receives the IRA assets after the account holder’s death if no named primary beneficiary qualifies to receive the assets. Tertiary Beneficiary – receives the IRA assets after the account holder’s death if no named secondary beneficiary qualifies to receive the assets. Note: If the account holder would like to change their beneficiary designation or name one at a later time they may do so throughout the lifetime of the account.Establishing and Funding IRAs 5 © 2012 Ascensus, Inc.www.ascensus.com
    • Spousal Consent Some states have community property or marital property laws that govern the property rights of married individuals. If the account holder names a primary beneficiary other than (or in addition to) their spouse, the spouse should sign the Spousal Consent portion of the IRA application. The account holder is not required to ask the spouse to sign, waiving their rights. It is also not required that the spouse sign if asked. Community/Marital Property States as of January 2012: *Alaska Arizona **California Idaho **Louisiana Nevada New Mexico Texas Washington Wisconsin * Alaska requires both spouses to “opt in” to community property law. ** While California and Louisiana have community property laws, they do not affect IRA death benefits if there are designated beneficiaries. Signatures and Date It is very important that both the account holder and the credit union representative sign the application. Without the account holder’s signature, there is no IRA.Establishing and Funding IRAs 6 © 2012 Ascensus, Inc.www.ascensus.com
    • Plan Agreement Ascensus Traditional IRA Agreement The plan agreement serves as the “contract” between the credit union and the individual for whom the IRA is created. The purpose of the plan agreement is to disclose both the credit union and the account holder’s responsibilities. The account holder must receive a copy of the plan agreement upon opening the account. Disclosure Statement Ascensus Traditional IRA Disclosure Statement When establishing an IRA, the credit union must provide an up-to-date disclosure statement, which explains the IRA rules in nontechnical language. The disclosure statement is written in a question and answer format. It also contains a revocation provision that allows the account holder to revoke the IRA within seven calendar days of receiving the statement. Financial Disclosure Ascensus Financial Disclosure The credit union must provide financial projections as part of the disclosure statement. This document must be provided to the account holder at account opening and is not to be required to be amended even if the investment or rate changes. It is not required to be in the account holder’s file if other documents state that the account holder acknowledges receipt of a financial disclosure. Apply Your Knowledge: Establishing an IRA 1. When completing the application the account holder is required to name beneficiaries (Yes or No). 2. The account holder must sign the application to establish the IRA (Yes or No). 3. What five documents must the account holder receive upon the opening of an IRA? 4. How often must the credit union give the financial disclosure to the account holder?Establishing and Funding IRAs 7 © 2012 Ascensus, Inc.www.ascensus.com
    • IRA Contributions Contribution Limit The maximum amount individuals may contribute to their IRAs is referred to as the “annual regular contribution limit.” The annual regular contribution limit is determined by the IRS each year and may be adjusted for COLAs. Account holders who attain age 50 by December 31 of the year are eligible to contribute an additional amount called a “catch-up contribution.” The catch-up contribution can be made any time during the year in which the account holder attains age 50 and for each subsequent year. Traditional and Roth IRA Aggregate Annual Regular Contribution Limits Additional “Catch-Up” Contribution Annual Regular Tax Year for Account Holders Age 50 and Contribution Limit Older 2012 $5,000* $1,000 ($6,000 total) * The $5,000 contribution limit may be adjusted for inflation in future years in $500 increments. Source: www.irs.gov (Publication 590) Example: Contribution Limit Kevin, age 54, has a Traditional and a Roth IRA at ABC Credit Union. Assuming he is eligible to contribute to both IRAs, he could contribute $3,000 to his Traditional IRA and $3,000 to his Roth IRA for tax year 2012.Establishing and Funding IRAs 8 © 2012 Ascensus, Inc.www.ascensus.com
    • Individual Contribution Limit If the account holder’s earned income is lower than the annual contribution limit, the account holder may be eligible to contribute up to 100 percent of their earned income. Note: Once again, this is an aggregate total for all of an account holder’s Traditional and Roth IRAs. Example: Individual Limit 1. Julie, age 19, is a single college student who earned $2,500 working in the university bookstore for tax year 2012. Even though the IRS contribution limit is $5,000, her individual limit will be $2,500. Spousal Contribution Limit A married account holder who does not earn any (or earns minimal) earned income and files a joint federal income tax return for a year can treat the couple’s joint earned income as their own for purposes of determining the annual contribution limit. To make a spousal contribution, the following requirements must be met. The couple must file a joint federal income tax return. There must be enough in earned income to support contributions for either spouse. Each spouse who wants to make a contribution must have his (or her) own IRA. For a Traditional IRA, the account holder must be younger than age 70½. For a Roth IRA, the account holder must meet the MAGI limitations. Example: Spousal Contribution Limit Kim and Matt, both 35, are married. Matt is in graduate school and has no earned income, and Kim is a dentist. As long as Kim and Matt file a joint federal tax return, Matt can use Kim’s earned income to contribute to his Traditional IRA. If Kim earns at least $10,000 in 2012, then they can both contribute $5,000 to their own IRAs for 2012.Establishing and Funding IRAs 9 © 2012 Ascensus, Inc.www.ascensus.com
    • Apply Your Knowledge: Contribution Limit 1. Edward was born on December 30, 1964. What is his aggregate contribution limit for 2012? 2. Elise was born on April 19, 1962. What is her aggregate contribution limit for 2012? Contribution Deadline Ascensus Traditional IRA Contribution Direction A current-year regular contribution can be made beginning on January 1 of that year. The deadline to make regular contributions for a year is the deadline for filing that year’s federal income tax return, generally April 15. The IRA contribution deadline is not extended for account holders who receive an extension for filing their federal income tax returns. If April 15 falls on a Saturday, Sunday, or legal holiday, the deadline is extended to the next business day. A regular contribution made by mail is deemed timely if the envelope is postmarked by the account holder’s federal tax return deadline and is accompanied by written direction.Establishing and Funding IRAs 10 © 2012 Ascensus, Inc.www.ascensus.com
    • Prior-Year Contributions Ascensus Traditional IRA Contribution Direction Under federal guidelines, the instruction to attribute a contribution to the prior year must be in writing and is irrevocable. The account holder may use any written means to make a prior-year contribution. To comply with these guidelines, credit unions should adhere to the following guidelines. If there is no written instruction, assume the regular contribution is for the current year. A prior-year regular contribution cannot be changed to a current-year regular contribution. Direct deposit contributions are made for the current-year unless the credit union receives written instruction before the contribution is made to treat it as a prior- year contribution. Apply Your Knowledge: Contribution Deadline 1. What is the last date on which Henry can make a contribution for tax year 2012? 2. If Henry makes his 2012 contribution on February 12, 2013, what methods can he use to provide the written direction for a prior-year contribution?Establishing and Funding IRAs 11 © 2012 Ascensus, Inc.www.ascensus.com
    • In Review The purpose of an IRA is to help the account holder save for retirement while gaining certain tax advantages. 1. The eligibility requirements for Traditional IRA contributions Earned Income – The account holder must receive earned income during the year for which the contribution is being made or file a joint federal income tax return with a spouse who receives earned income. Age – The account holder must be under age 70½, and must not reach age 70½ during the year for which the contribution is being made. 2. The eligibility requirements for Roth IRA contributions Earned Income – The Roth account holder must receive earned income during the year for which the contribution is being made or file a joint federal income tax return with a spouse who receives earning income. Income Limit – The Roth account holder must have earned income under the MAGI limit for the year for which the contribution is being made. 3. An eligible individual who reaches age 50 by the end of the calendar year may make a “catch-up” contribution for that year. 4. An eligible individual may make contributions up to the lesser of 100 percent of earned income or the annual contribution limit for the tax year. 5. A married person who files a joint federal income tax return may claim a spouse’s earned income as their own under the spousal contribution rules. 6. The deadline to contribute to an IRA is the account holder’s federal tax return deadline (usually April 15).Establishing and Funding IRAs 12 © 2012 Ascensus, Inc.www.ascensus.com
    • Answers to Group Exercises Contribution Eligibility 1. Meredith is single, 35, and works as a doctor. She receives earned income of $80,000 per year. Can Meredith make a contribution to a Traditional IRA? (Yes) 2. Derek is married, 38, and is a mechanic. He and his wife file a joint federal income tax return. Their combined earned income is $84,000 per year and they have a combined MAGI of $90,000 per year. Can Derek contribute to a Roth IRA? (Yes) 3. George is single, 75, and is a maintenance worker. He has earned income of $35,000 per year. Can George contribute to a Traditional IRA? (No) Establishing an IRA 1. When completing the application the account holder is required to name beneficiaries. (No) 2. The account holder must sign the application to establish the IRA. (Yes) 3. What five documents must the account holder receive upon the opening of an IRA? (IRA application, IRA agreement, IRA disclosure statement, financial disclosure, and Truth-In-Savings). 4. How often must the credit union give the financial disclosure to the account holder? (Once). Contribution Limit 1. Edward was born on December 30, 1964. What is his aggregate contribution limit for 2012? ($5,000) 2. Elise was born on April 19, 1962. What is her aggregate contribution limit for 2012? ($6,000) Contribution Deadline 1. What is the last date on which Henry can make a contribution for tax year 2012? (April 15, 2013) 2. If Henry makes his 2012 contribution on February 12, 2013, what methods can he use to provide the written direction for a prior-year contribution? (Every written direction method accepted by the credit union)Establishing and Funding IRAs 13 © 2012 Ascensus, Inc.www.ascensus.com
    • Job AidsEstablishing and Funding IRAs © 2012 Ascensus, Inc.www.ascensus.com
    • Sources of Income Earned Income Not Earned Income Wages Commissions Interest Child support Salaries Professional fees Royalties* Separation & Early retirement Tips Jury pay Dividends AFDC & TANF** Bonuses Directors fees Rental Income Social Security Taxable alimony Combat pay Unemployment compensation Disability pay *Whether royalties are considered earned income is dependent on several factors. * *Aid to Families with Dependent Children and Temporary Assistance for Needy Families 2012 MAGI Limits for Regular Roth IRA Contributions* MAGI for MAGI for Ineligible for Roth Filing Status Full Contribution Partial Contribution Contribution Single Up to $110,000 $110,000 up to $125,000 Over $125,000 Married, filing jointly Up to $173,000 $173,000 up to $183,000 Over $183,000 Married, filing separately** N/A $0 up to $10,000 Over $10,000 ** If the Roth account holder did not live with their spouse at any time during the year, they are considered a single filer for the purpose of determining Roth IRA eligibility. * MAGI limits may be adjusted annually by the IRS; changes are posted to the IRA Resource Center.Establishing and Funding IRAs 15 © 2012 Ascensus, Inc.www.ascensus.com
    • TRADITIONAL IRA TRUST APPLICATION PACKET (FORM 2300-T)Please Print or Type___ ___ ___ ___ ___CUID (Credit union will complete.) IRA Owner’s Name (First, Initial, Last)IRA Owner’s Social Security Number Identifying Info___ ___ ___ - ___ ___ - ___ ___ ___ ___ Street AddressIRA Owner’s Birth Date (MM/DD/YYYY) - (required for processing) Mailing Address if Different From Street AddressAccount Number City, State, ZipI instruct the credit union to invest this IRA in the following investment: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________________M This is a Simplified Employee Pension (SEP) IRA. DESIGNATION OF BENEFICIARY (Revocable; see next page for complete instructions) PRIMARY Beneficiary(ies) — % Column MUST total 100% % Name Mailing Address Relationship Birth Date SS # SECONDARY Beneficiary(ies) — % Column MUST total 100% % Name Mailing Address Relationship Birth Date SS # Beneficiary Designation TERTIARY Beneficiary(ies) — % Column MUST total 100% % Name Mailing Address Relationship Birth Date SS # Spousal Consent ACCEPTANCE OF TrusteeThis section should be reviewed if either the trust or residence of the IRA owneris located in a community or marital property state and the IRA owner is married. (for credit union use only)Due to the important tax consequences of giving up one’s community property The credit union hereby establishes a traditional IRAinterest, individuals signing this section should consult with a competent tax for the above IRA owner under the terms of the “Creditor legal advisor. Union Traditional IRA Trust Agreement.” Current Marital Status  Spousal ConsentM I Am Not Married – I understand that if I become married in the future, I must complete a new Traditional IRA Beneficiary Designation/Change form (Form 2303T). Signatures Credit Union NameM  Am Married – I understand that if I choose to designate a primary I beneficiary other than my spouse, my spouse must sign below. Credit Union Mailing Address (include street address) Consent of SpouseI am the spouse of the above-named IRA owner. I acknowledge that I have City, State, Zipreceived a fair and reasonable disclosure of my spouse’s property and financialobligations. Due to the important tax consequences of giving up my interest in Xthis IRA, I have been advised to see a tax professional. Authorized Credit Union Signature Date (MM/DD/YYYY)I hereby give the IRA owner any interest I have in the funds or property deposited M Check here if this is an amendment to an existing IRA.in this IRA and consent to the beneficiary designation(s) indicated above. Iassume full responsibility for any adverse consequences that may result. No IRA OWNER’S SIGNATUREtax or legal advice was given to me by the Trustee. I acknowledge receipt of the “Credit Union Traditional IRA Disclosure Statement,” which includes a financial projectionX table. I also accept the terms and conditions of the “Credit UnionSignature of Spouse Date (MM/DD/YYYY) Traditional IRA Trust Agreement.”X XSignature of Witness Date (MM/DD/YYYY) IRA Owner’s Signature Date (MM/DD/YYYY) Stock #80008 2300-T 2010 Ascensus, Inc., Middleton, WI© (Rev. 1/2010)
    • TRADITIONAL IRA BENEFICIARY DESIGNATION/CHANGE (FORM 2303T)Please Print or Type____ ____ ____ ____ ____ Credit Union NameCUID (Credit union will complete.)____ _____ _____ - _____ _____ - _____ _____ _____ _____ - _____ _____ Social Security Number IRA Suffix IRA Owner’s Name (First, Initial, Last) Account Number I am the beneficiary. (Check this box if you are not the original owner of this account, but instead received it as a beneficiary after the original owner’s death and are now designating your own beneficiaries.)___________________________________________________________ _____ _____ _____ - _____ _____ - _____ _____ _____ _____ - _____ _____Original IRA Owner’s Name Original IRA Owner’s Social Security Number IRA Suffix DESIGNATION OF BENEFICIARY (Revocable; see next page for complete instructions) PRIMARY Beneficiary(ies) — % Column MUST total 100% % Name Mailing Address Relationship Birth Date SS # SECONDARY Beneficiary(ies) — % Column MUST total 100% % Name Mailing Address Relationship Birth Date SS # Sample TERTIARY Beneficiary(ies) — % Column MUST total 100% % NameBeneficiary Designation/Change Form for each IRA.) Mailing Address Spousal Consent Relationship Birth Date(This beneficiary designation overrides all previous designations for this IRA. If you have more than one IRA, you must fill out a separate SS #This section should be reviewed if either the trust or residence of the IRA owner or inherited IRA owner is located in a community or maritalproperty state and the IRA owner or inherited IRA owner is married. Due to the important tax consequences of giving up one’s communityproperty interest, individuals signing this section should consult with a competent tax or legal advisor. Current Marital StatusM I  Am Not Married – I understand that if I become married in the future, I must complete a new Traditional IRA Beneficiary Designation/ Change form (Form 2303T).M I  Am Married – I understand that if I choose to designate a primary beneficiary other than my spouse, my spouse must sign below. Consent of SpouseI am the spouse of the above-named IRA owner or inherited IRA owner. I acknowledge that I have received a fair and reasonable disclosureof my spouse’s property and financial obligations. Due to the important tax consequences of giving up my interest in this IRA, I have beenadvised to see a tax professional.I hereby give the IRA owner or inherited IRA owner any interest I have in the funds or property deposited in this IRA and consent to thebeneficiary designation(s) indicated above. I assume full responsibility for any adverse consequences that may result. No tax or legal advicewas given to me by the Trustee or Custodian.X_____________________________________________________ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____________________ ______________________________Signature of Spouse Date (MM/DD/YYYY)X_____________________________________________________ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____________________ ______________________________Signature of Witness Date (MM/DD/YYYY) IRA OWNER’S SIGNATURE (This beneficiary designation is not effective unless signed.)X_____________________________________________________ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____________________ ______________________________Original IRA Owner’s/Inherited IRA Owner’s Signature Date (MM/DD/YYYY) Stock #80013 2303T© 2010 Ascensus, Inc., Middleton, WI (Rev. 1/2010)
    • CREDIT UNION TRADITIONAL IRA TRUST AGREEMENT (rev. 1/2010) Form 5305 under Section 408(a) of the 4. REQUIRED MINIMUM DISTRIBUTIONS (b) If the grantor dies before the requiredInternal Revenue Code FORM (rev. March beginning date, the remaining interest2002). 4.1 Distributions Must Comply With will be distributed in accordance with Tax Laws. Notwithstanding any provision (i) below or, if elected or there is no The grantor named on the application of this agreement to the contrary, the designated beneficiary, in accordanceis establishing a traditional individual distribution of the grantor’s interest in the with (ii) below:retirement account under section 408(a) trust account shall be made in accordanceto provide for his or her retirement and for with the following requirements and shall (i) The remaining interest will bethe support of his or her beneficiaries after otherwise comply with section 408(a)(6) and distributed in accordance withdeath. the regulations thereunder, the provisions of paragraphs (a)(i) and (a)(ii) which are herein incorporated by reference. above (but not over the period in The trustee named on the application has paragraph (a)(iii), even if longer),given the grantor the disclosure statement 4.2 Post 70½ Distributions. The starting by the end of the calendarrequired by Regulations section 1.408-6. grantor’s entire interest in the trust account year following the year of the must be, or begin to be, distributed not grantor’s death. If, however, the The grantor has assigned the trust later than the grantor’s required beginningaccount the sum indicated on the designated beneficiary is the date, April 1 following the calendar year in grantor’s surviving spouse, thenapplication. which the grantor reaches age 70½. By that this distribution is not required The grantor and the trustee make the date, the grantor may elect, in a manner to begin before the end of thefollowing agreement: acceptable to the trustee, to have the calendar year in which the grantor balance in the trust account distributed in: would have reached age 70½. 1. CONTRIBUTION LIMIT (a) A single sum; or But, in such case, if the grantor’s surviving spouse dies before Except in the case of a rollover (b) Payments over a period not longer than distributions are required to begin,contribution described in section 402(c), the life of the grantor or the joint lives of then the remaining interest will be403(a)(4), 403(b)(8), 408(d)(3), or 457(e) the grantor and his or her designated distributed in accordance with (a)(16), an employer contribution to a simplified beneficiary. (ii) above (but not over the periodemployee pension plan as described in paragraph (a)(iii), even if longer), 4.3 Death Benefits. If the grantor dies Samplein section 408(k) or a recharacterized over such spouse’s designatedcontribution described in section 408A(d) before his or her entire interest is distributed beneficiary’s life expectancy, or in(6), the trustee will accept only cash to him or her, the remaining interest will be accordance with (ii) below if therecontributions up to $3,000 per year for tax distributed as follows: is no such designated beneficiary.years 2002 through 2004. That contribution (a) If the grantor dies on or after thelimit is increased to $4,000 for tax years (ii) The remaining interest will be required beginning date and:2005 through 2007 and $5,000 for 2008 and distributed by the end of thethereafter. For individuals who have reached (i) the designated beneficiary is calendar year containing the fifththe age of 50 before the close of the tax the grantor’s surviving spouse, anniversary of the grantor’s death.year, the contribution limit is increased to the remaining interest will be 4.4 No Contributions to Inherited IRA.$3,500 per year for tax years 2002 through distributed over the surviving If the grantor dies before his or her entire2004, $4,500 for 2005, $5,000 for 2006 and spouse’s life expectancy, as interest has been distributed and if the2007, and $6,000 for 2008 and thereafter. determined each year until such designated beneficiary is not the grantor’sFor tax years after 2008, the above limits spouse’s death, or over the period surviving spouse, no additional contributionswill be increased to reflect a cost-of-living in paragraph (a)(iii) below if longer. may be accepted in the account.adjustment, if any. Any interest remaining after the spouse’s death will be distributed 4.5 Computation of the RMD. The 2. NONFORFEITABLE over such spouse’s remaining life minimum amount that must be distributed expectancy as determined in the each year, beginning with the year The grantor’s interest in the balance in the year of the spouse’s death and containing the grantor’s required beginningtrust account is nonforfeitable. reduced by 1 for each subsequent date, is known as the “required minimum year, or, if distributions are being distribution” (RMD) and is determined as 3. INVESTMENT LIMITATIONS made over the period in paragraph follows: (a)(iii) below, over such period. 3.1 No Life Insurance or Asset (a) Post 70½ RMD. The required minimumCommingling. No part of the trust account (ii) the designated beneficiary is not distribution under paragraph 4.2(b)funds may be invested in life insurance the grantor’s surviving spouse, for any year, beginning with the yearcontracts, nor may the assets of the trust the remaining interest will be the grantor reaches age 70½, isaccount be commingled with other property distributed over the beneficiary’s the grantor’s account value at theexcept in a common trust fund or a common remaining life expectancy as close of business on December 31investment fund (within the meaning of determined in the year following of the preceding year divided by thesection 408(a)(5)). the death of the grantor and distribution period in the uniform reduced by 1 for each subsequent lifetime table in Regulations section 3.2 Restriction on Collectibles. No part year, or over the period in 1.401(a)(9)-9. However, if the grantor’sof the trust account funds may be invested paragraph (a)(iii) below if longer. designated beneficiary is his or herin collectibles (within the meaning of section surviving spouse, the required minimum408(m)) except as otherwise permitted (iii) there is no designated beneficiary, distribution for a year shall not be moreby section 408(m)(3), which provides the remaining interest will be than the grantor’s account value at thean exception for certain gold, silver, and distributed over the remaining close of business on December 31platinum coins, coins issued under the laws life expectancy of the grantor of the preceding year divided by theof any state, and certain bullion. as determined in the year of the number in the joint and last survivor grantor’s death and reduced by 1 table in Regulations section 1.401(a) for each subsequent year. Stock #80008 2300-T© 2010 Ascensus, Inc., Middleton, WI Page 1 of 10 (Rev. 1/2010)
    • CREDIT UNION TRADITIONAL IRA DISCLOSURE STATEMENT (rev. 1/2010) This publication discusses traditional taxable income you receive during the year 4. HOW MUCH OF MY TRADITIONALindividual retirement accounts (IRAs) in for performing services or that you receive IRA CONTRIBUTION CAN Igeneral, and your credit union-sponsored as taxable alimony or separate maintenance DEDUCT?traditional IRA in particular. This publication payments. Amounts excluded from taxableonly discusses the federal tax rules, and you income are generally not treated as This answer discusses the amount that youshould consult your tax advisor concerning compensation. The only exception is that all can deduct for making regular contributionsthe tax laws of your state. Your credit union combat pay earned by military personnel is to a traditional IRA. The amount that you canis referred to as “we” in this document. treated as compensation, even though most contribute is discussed in answer 2. combat pay is not taxable. Compensation Factors Affecting Deduction. The There are two types of IRAs. This does not include income from property,document primarily discusses the original amount you can deduct depends on whether such as interest, dividends, rent, or capital you and your spouse (if you are married) areIRAs that were created in 1974, which are gains. You compute your net income fromcalled “traditional IRAs.” The second type active participants in a retirement plan, and performing services by adding: your modified adjusted gross income (MAGI)was created by Congress in 1997, andthese are called “Roth IRAs.” Roth IRAs • The wages, salary, tips, bonuses, for federal income tax purposes.are discussed in this document only to professional fees, consulting fees, and An active participant in a retirement planthe extent they relate to traditional IRAs. other amounts you receive for providing is someone who is an active participant inMany rules are the same for both traditional personal services as an employee (you an IRC 401 pension, profit-sharing, or stock-and Roth IRAs, and the discussion of can use the amounts shown in the bonus plan; a Keogh plan; a SEP plan; athese rules will refer simply to “IRAs.” For “wages, tips, other compensation” box of SIMPLE plan; a government retirement planmore information about Roth IRAs, ask the IRS Forms W-2 that you receive); plus (other than Social Security); an IRC 403(b)for the Credit Union Roth IRA Disclosure annuity or mutual fund plan; or an employeeStatement. • The net income from a business you own and operate as a sole proprietor or savings plan operated under IRC 501(c)(18). 1. CAN I REVOKE MY IRA AFTER I your share of partnership income, but The following retirement plans are ignored in HAVE SIGNED THE APPLICATION? only if you actively provide services in making this determination: (1) Service as a connection with the business. member of a reserve or national guard unit Right to Revoke. You can revoke an of less than 91 days of active duty during theIRA within seven days after you receive (b) Annual Contribution Limit. Your year (other than active duty for training), or Samplethis disclosure statement (except that you regular traditional IRA contributions for a (2) Service as a volunteer firefighter, if thecannot revoke your IRA if you received this year cannot exceed the annual contribution accrued benefits as of the beginning of thedisclosure statement seven or more days limit (which is the amount stated in the year are not more than an annual benefit ofbefore you set up your IRA). We are required following table). The annual contribution limit $1,800 (single life annuity commencing atto report to the IRS the contributions to and is higher in the year you reach age 50 and in age 65).distributions from a revoked IRA. each subsequent year. For example, if you reach age 50 by December 31, 2007, then Your MAGI is your adjusted gross How to Revoke. You can revoke an IRA this limit is $5,000 for 2007. income before taking any deduction forby calling us, writing to us, or stopping by IRA contributions, and without taking intoour office. Calls should be placed during Contributions For Under Age 50 Age 50+ account certain foreign income, foreignnormal business hours. Mailed notices are 2006–2007 $4,000 $5,000 housing exclusions, and series EE bondtimely if postmarked within the seven-day 2008 $5,000 $6,000 interest. Use your joint MAGI if you file aperiod. If you revoke your IRA, the entire joint income tax return.amount of any contributions you have made In 2009 and later years, the $5,000will be returned to you. contribution limit for individuals under age If You Are NOT an Active Participant. 50 will be subject to an inflation adjustment. You can deduct all of your regular traditional 2. HOW MUCH CAN I CONTRIBUTE The annual contribution limit for individuals IRA contributions regardless of your income TO A TRADITIONAL IRA? age 50 or older will be $1,000 more than if you are single or if your spouse is also not the adjusted amount for individuals under an active participant in a retirement plan. But There are two limits on the regular age 50. if your spouse is an active participant in acontributions you can make to a traditional retirement plan, then the maximum amountIRA for a year. Your regular traditional IRA 3. WHEN CAN I MAKE you can deduct is phased out betweencontributions are limited to the lower of CONTRIBUTIONS? $150,000 and $160,000 of MAGI for 2006,these limits. All regular contributions for the and between $156,000 and $166,000same year to all of your traditional IRAs You can make regular IRA contributions up until the time prescribed by law for filing of MAGI for 2007. Use the MAGI on themust be combined for purposes of meeting tax return you file, whether it is a joint orthe contribution limits. A regular traditional the tax return for the year, not including filing extensions. If you report income on separate return.IRA contribution is any contribution thatdoes not qualify as a direct transfer, rollover, a calendar tax year basis, the deadline for If You ARE an Active Participant. Thedirect rollover, recharacterization, SEP or making a regular IRA contribution for a year deduction for an active participant who isSIMPLE contribution. is April 15 of the following year. If April 15 is single is phased out between $50,000 and a weekend or a legal holiday at the address $60,000 of MAGI for 2006, and between (a) Compensation Limit. In general, to which you mail your federal tax return, $52,000 and $62,000 of MAGI for 2007.your total regular IRA contributions then the deadline is the next business day. The deduction for an active participant whofor a year (both to Roth and traditional You can make a regular IRA contribution files a joint return is phased out betweenIRAs) cannot exceed the amount of your before this deadline even if you have already $75,000 and $85,000 of joint MAGI forcompensation earned during that year. If filed your tax return for the year (this may 2006, and between $83,000 and $103,000you file a joint federal income tax return and require you to file an amended return). There of joint MAGI for 2007. The deduction forearn less compensation than your spouse, is no special time during this period for a married active participant who files ayou can treat as compensation the joint making a regular IRA contribution. You can separate return is phased out betweencompensation of you and your spouse, less make regular IRA contributions periodically zero and $10,000 of joint MAGI. Most ofthe IRA contributions made by your spouse. during the year, or in a single contribution for these phase-out ranges will be adjusted forYour compensation for a year is the total the year. inflation in subsequent years. Stock #80008 2300-T© 2010 Ascensus, Inc., Middleton, WI Page 4 of 10 (Rev. 1/2010)
    • ABC CREDIT UNION ***FINANCIAL PROJECTIONS***This page contains projections of the future value of your IRA based on these assumptions:1. The investment terms and fees described below remain the same throughout the projection period.2. You withdraw the entire IRA at the end of the accumulation period.3. The single contribution column assumes that $1,000 was contributed at the beginning of the year (the 1st year).4. The annual contribution column assumes that $1,000 was contributed at the beginning of each year starting this year (the 1st year).The three columns below list the projected values at the end of each year. To find the value at the end of a particular year, locate the years in the accumulated periodchart. Then go left to get the single contribution value, right to get the annual contribution value. Use the chart at the right to find the accumulation period until the endof the year you reach age 60, 65, or 70. These are only projections, not guaranteed amounts. The future value of your IRA will depend on many factors. Years Until You Reach ACCUMULATED PERIOD CHART AGE NOW 60 65 70 SINGLE ANNUAL SINGLE ANNUAL CONTRI- CONTRI- CONTRI- CONTRI- 69 1 68 2 BUTION BUTION BUTION BUTION 67 3 VALUE VALUE VALUE VALUE 66 4 65 5 YEARS YEARS 64 1 6 1,010 1 1,010 1,308 27 31,129 63 2 7 62 3 8 1,020 2 2,030 1,321 28 32,450 61 4 9 60 5 10 1,030 3 3,060 1,335 29 33,785 59 1 6 11 1,041 4 4,101 1,348 30 35,133 58 2 7 12 57 3 8 13 1,051 5 5,152 1,361 31 36,494 56 4 9 14 1,062 6 6,214 1,375 32 37,869 55 5 10 15 54 6 11 16 1,072 7 7,286 1,389 33 39,258 53 7 12 17 52 8 13 18 1,083 8 8,369 1,403 34 40,660 51 9 14 19 1,094 9 9,462 1,417 35 42,077 50 10 15 20 49 11 16 21 1,105 10 10,567 1,431 36 43,508 48 12 17 22 47 13 18 23 1,116 11 11,683 1,445 37 44,953 46 14 19 24 1,127 12 12,809 1,460 38 46,412 45 15 20 25 44 16 21 26 1,138 13 13,947 1,474 39 47,886 43 17 22 27 42 18 23 28 1,149 14 15,097 1,489 40 49,375 41 19 24 29 1,161 15 16,258 1,504 41 50,879 40 20 25 30 39 21 26 31 1,173 16 17,430 1,519 42 52,398 38 22 27 32 37 23 28 33 1,184 17 18,615 1,534 43 53,932 24 34 36 29 1,196 18 19,811 1,549 44 55,481 35 25 30 35 34 26 31 36 1,208 19 21,019 1,565 45 57,046 33 27 32 37 32 28 33 38 1,220 20 22,239 1,580 46 58,626 31 29 34 39 1,232 21 23,472 1,596 47 60,223 30 30 35 40 29 31 36 41 1,245 22 24,716 1,612 48 61,835 28 32 37 42 1,257 23 25,973 1,628 49 63,463 27 33 38 43 26 34 39 44 1,270 24 27,243 1,645 50 65,108 25 35 40 45 24 36 41 46 1,282 25 28,526 1,661 51 66,769 23 37 42 47 1,295 26 29,821 1,678 52 68,447 22 38 43 48 21 39 44 49 20 40 45 50 19 41 46 51 18 42 47 52 NOMINAL EARNINGS RATE 1.0000 WITHDRAWAL PENALTY (DAYS) 0 CALCULATION METHOD Compound ENROLLMENT FEE .00 COMPOUNDING FREQUENCY Quarterly ANNUAL FEE .00 EFFECTIVE ANNUAL YIELD 1.0038 WDL/TERM FEE .00 TERM IN Days DAYS IN YEAR 365 NUMBER OF DAYS 365© 2009 Ascensus, Inc., Middleton, WI
    • TRADITIONAL IRA CONTRIBUTION DIRECTION (FORM 2315)Please Print or Type___ ___ ___ ___ ___CUID (Credit union will complete.) Credit Union Name___ ___ ___ - ___ ___ - ___ ___ ___ ___ - ___ ___Social Security Number IRA Suffix IRA Owner’s Name (First, Initial, Last) Account Number GENERAL INFORMATIONWe report all traditional IRA contributions as regular You should tell us whenever you make a simplifiedcontributions for the current year, unless we are employee pension (SEP) contribution so we can reportinstructed to report a contribution in a different manner. it correctly. You can do this by completing the SEPYou can use this form to give us this instruction in two Contribution section. We are required to report a SEPsituations. contribution in the year in which it is made, even if it isWhen you make a regular contribution between January 1 based on the earnings in a prior year.and your tax return deadline (usually April 15), you can You should complete a Traditional IRA Rollover andinstruct us to report the contribution as being attributed Transfer Contributions (Form 2314T) to instruct us thatto the previous year. You can do this by completing the a contribution is a direct transfer or rollover from anotherRegular Contribution section. After you give us this traditional IRA or a direct rollover or rollover from ainstruction, you cannot change back to having us report traditional qualified retirement plan. Samplethe contribution as being for the current year. It is not You should complete an IRA Contributionnecessary to instruct us to report a regular contribution Recharacterization (Form 2319) to instruct us that afor the year in which it is made, since we do this contribution is a recharacterization of a contributionautomatically if we do not receive a contrary instruction. originally made to your Roth IRA. REGULAR CONTRIBUTION$____________________________________________ ______________________________________________ Amount of Contribution Tax Year to Which Contribution Applies (YYYY)  SEP CONTRIBUTION$____________________________________________ ______________________________________________ Amount of Contribution Calendar Year Contribution was Made (YYYY)  IRA OWNER’S SIGNATUREX________________________________________________ ______________________________________________    IRA Owner’s Signature  Date (MM/DD/YYYY) For Credit Union Use Only _____________________________________ _____________________________________________ Name of Credit Union Employee Who Took Deposit    Date of Deposit (MM/DD/YYYY) Stock # 80022 2315 2009 Ascensus, Inc., Middleton, WI© (Rev. 12/2009)