Save for the future and reap some immediate and future tax saving benefits. Whether you choose either a Traditional IRA, a Roth IRA or a Coverdell ESA, First Entertainment’s variety of options - helps you secure your financial future. And secure is right, these IRA accounts - and our IRA Term Savings Certificates are fully insured separately from your others savings by the NCUA up to $250,000.
To Open a New IRA
You'll need to use our "Individual Retirement Account Application" form
To Roll Over an Existing IRA
If you already have an IRA with us and want to roll over or transfer another IRA, you'll need to use our "IRA Contribution and Investment" form
Both forms are available at any of our branches or call 888.800.3328 and we can mail the form you need.
These IRAs earn dividends on all account balances and may be tax deductible in the year of contribution, but any withdrawals are taxed as income. First Entertainment offers Traditional IRAs with a opening deposit of just one dollar, no set-up fee or annual fee. You can also arrange automatic monthly transfers from checking or savings as well as customize withdrawals as lump sums or periodic payments.
The Roth IRA provides no tax deduction for contributions, but if you meet certain requirements, all earnings are tax-free when you or your beneficiaries withdraw them. Other benefits include avoiding the early distribution penalty on certain withdrawals, and avoiding the need to take minimum distributions after age 70 1/2. If you cannot take a tax deduction for a Traditional IRA contribution, you should consider the Roth IRA. Consult a tax advisor to determine your eligibility.
Coverdell ESAs (Education Savings Accounts) can help you save up to $2,000 per year, per child. They provide no tax deduction for contributions, but if you meet certain requirements, all earnings are tax free when you or your beneficiary withdraw them and use them for qualified education expenses.
All IRAs opened with First Entertainment Credit Union can be either a Daily or Certificate IRA. Here are the differences:
- Daily IRAs- Earn high dividends and you can open one with no minimum balance.
- Certificate IRAs – Earn higher dividends based on the term length. They pay the same dividend rate as our Term Savings Certificates and a minimum opening deposit of $1,000 is required. We offer terms of 6 months to 5 years. Penalties for early withdrawal apply in accordance with IRS regulations.
We want you to find the right IRA for your own personal financial situation, so please consult with your tax advisor to determine which IRA option is best for you.
As of January 1, 2015 the IRS has changed its interpretation of the "one-per-12 month rule."A court decision ruled that a taxpayer is limited to one rollover per 12-month period, regardless of the number of IRAs they have. Prior to this ruling, the IRS allowed that you could roll over one IRA distribution per 12-month period for each IRA you owned.
The 12-month period begins on the day that you receive the IRA distribution. In addition, the IRA assets that are rolled over may not be rolled over more than once during the 12-month period.
You may now only roll over one IRA distribution in any 12-month period regardless of how many IRAs you own. You may still perform an unlimited number of transfers.
Due to this change, before rolling over an IRA distribution please consult with your tax advisor.