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Traditional & Roth IRAs

Needs vary when it comes to selecting an IRA, depending on where you are in life and how you want your funds to be taxed after retirement. It’s never too late (or too early) to start planning for your future, take your first step by scheduling a consultation with Hudson Valley Financial Services.
 

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  • IRA bullet
    An Individual Retirement Account, or IRA, is one of the smartest, most tax-efficient ways to save for retirement.
  • Compare IRAs bullet
    Both Traditional and Roth IRAs offer substantial tax savings, but each has its own uses, advantages, and guidelines (see table below).
  • SI bullet
    Your accounts insured by the National Credit Union Share Insurance Fund to at least $250,000. Visit mycreditunion.gov to learn more about your Share Insurance Coverage and to access resources including a Share Insurance estimator tool, publications, videos, and more.

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Contributions

The maximum amount you can put aside annually for an IRA varies by the year in which your contributions are made, and is dependent upon your income and marital status. If you are turning 50 in the tax filing year, you can also benefit from additional catch-up contributions. IRA contributions must be made by your tax filing date.

 

Direct Transfers and Rollovers

Moving funds to an Hudson Valley IRA from another qualifying plan is simple and may be processed as a transfer or rollover. It is recommended that you consult with an Hudson Valley Financial Services Consultant and/or your tax advisor to help decide which is best for you:

Direct Transfer- Funds are sent direct from another IRA to Hudson Valley.

Direct Rollover- Funds are distributed from a qualified retirement plan and deposited into a comparable IRA plan.

Indirect Rollover- Funds are distributed directly to you and must be deposited into an IRA account within 60 days to avoid being taxed.

 

Beneficiaries

When establishing a new IRA plan you will designate your beneficiary and any additional shares under that plan will have the same beneficiary. If you wish to change your beneficiary on an existing plan, please complete the (IRA Designation of Beneficiary) form.

 

 

Compare Traditional & Roth IRAs

Traditional IRA Roth IRA
Maximum annual contributions allowed per individual
 
2018: $5,500
2019: $6,000

 
2018: $5,500
2019: $6,000

 
Maximum annual contributions allowed per married couple
 
2018: $11,000
2019: $12,00
2018: $11,000
2019: $12,000
Maximum catch-up contributions allowed per individual turning 50 in the taxable year
 
$1,000 $1,000
Who can contribute?
 
Anyone under age 70 1/2 with earned income from employment
 
Anyone with modified adjusted gross incomes (MAGI) under $110,000 for single taxpayers, $160,000 for married taxpayers filing jointly
Are contributions tax deductible?
 
Yes, in some instances depending on income and availability of employer-sponsored retirement plan No
 
 
How long can I contribute?
 
Until age 70 1/2, provided you or your spouse have earned income No age limit, provided you or your spouse have earned income
When are distributions allowed?
 
Without penalty upon age 59 1/2, or earlier if funds used for first-time home purchase,
higher education expenses,
or qualified medical expenses

 
If they have been held for five successive tax years, distributions are allowed without penalty if:
- You reach age 59 ½
- You become disabled
- You are using for a first-time home purchase, or higher education or qualified medical expenses
- Your death results in a distribution of funds
 
Are allowable distributions taxed?
 
Yes
Account is tax free if funds have been held for five successive years, or;
- You reach age 59 ½
- You become disabled
- You are using funds for a first-time home purchase, or higher education or qualified medical expenses
- Your death results in a distribution of funds
 
Are there specific withdrawal requirements?
 
You must begin withdrawing funds at age 70 1/2 based on a specific withdrawal calendar—contributions also end at age 70 1/2
 
You are not required to take minimum distributions at age 70 1/2 or older, and in fact you may continue to add to your account regardless of your age

 

 

Traditional & Roth IRA Savings Rate

APY
0.10%
Dividend Rate
0.10%
Minimum to Open
$0

View all rates and disclosures

Questions and Forms

Click here for IRA research and blank forms.  Forms can be sent to Hudson Valley using the following delivery channels:
 

  • Drop off to any branch location
  • Secured email to securedmail.Hudson Valley.org
  • Faxed to (845) 463-1646
  • Mail to: Member Support Services, PO Box 1071, Poughkeepsie, NY 12602
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