How to Fund Your IRA
Contributions, Transfers, or Rollovers
IRA CONTRIBUTION
Maximize your retirement savings by making contributions or by aggregating retirement assets. Here are some easy ways to fund your IRA.
IRA Contributions
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IRS allowable
contribution limits apply.
An IRA contribution is a deposit of money into an Individual Retirement Account (IRA). IRAs are a tax-advantaged way to save for retirement and require IRS eligibility, typically earned income.
How to get started:
1) Complete Your Application
- Define type of account (IRA, ROTH, SEP)
- Define Beneficiary(ies)
- Select product or IRA type
- Note contribution amount & tax year
2) Fund your NASA Federal Account
3) Make an IRA Contribution via:
- Online Banking (current year)
- Via Phone
- Secure Message
- Mail (check)
- Branch
IRA Transfers
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An IRA transfer is the process of moving money from one IRA to another, typically between institutions or within the same institution. This can be done between like IRAs, e.g. IRA to IRA or ROTH to ROTH, etc.
IRA owner authorizes with Transfer Forms and does not provide IRA instructions for funds (over the counter, ACH, wire, etc).
- Unlimited number of transactions
- No IRS Reporting
- Income tax withholding does not apply
- RMD may be included
No Constructive Receipt of Assets
The IRA owner must not receive the assets directly. The IRA owner completes a Transfer Form with the receiving institution. This signed Transfer Form is the IRA owner's authorization for NASA Federal to request your IRA funds. NASA Federal will provide detailed instructions to your other institution to ensure proper IRA handling on your behalf.
No Reporting
Transfers are not reported to the IRS or the IRA owner. The distributing organization does not generate IRS form 1099-R to report a distribution, and the receiving organization does not report the transfer deposit on IRS form 5498.
IRA Rollover
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An IRA rollover is the process of moving funds from a retirement account to an IRA. The IRA owner requests funds to be distributed from their IRA with a withdrawal request. Here are some features of an IRA Rollover:
- 60-Day Rule
- Constructive receipt of assets
- One per 12-month rule
- Irrevocable election
- Income tax withholding applies
- RMDs cannot be rolled over
Constructive Receipt of Assets
IRA owners receive a distribution of the IRA assets meaning the check is made payable to the IRA owner. The owner can either keep the assets and claim the assets as income, or roll them over into an IRA. The direct receipt allows the IRA owner to use or keep some or all of the assets before "rolling them over" into an IRA.
60-Day Rule
IRA owners generally have 60 days from the day they physically receive the assets to deposit them into an IRA as a "rollover." The IRS limits IRA rollovers to one (1) per 12 month period for all of your retirement assets.
Reporting Occurs
An IRA distribution is reportable to the IRS and the IRA owner. The distributing organization generates IRS form 1099-R to report the distribution and any withholding. The receiving rollover institution issues IRS form 5498 to report the IRA rollover.
IRA Contribution Limits
Please be aware that there are federal limits on how much you may contribute to your Individual Retirement Account (IRA) each year. Staying within these limits is crucial to avoiding penalties and ensuring your retirement savings grow efficiently.
Contributing the maximum allowed amount can significantly boost your retirement funds. To stay informed and make the most of your IRA contributions, view our page on IRA Contribution Limits!
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