IRA Conversion Rules to Change

MAGI and Filing Restrictions Eliminated
The $100,000 modified adjusted gross income (MAGI) limit on conversions of Traditional IRAs to Roth IRAs will be eliminated effective for 2010 and later (technically, for tax years beginning after December 31, 2009.) The married filing separate restriction will also be removed. This means that anyone with a Traditional IRA will be eligible to make a conversion contribution in 2010 and later years.

Income Averaging
Additionally, for conversions occurring in 2010, unless a taxpayer elects otherwise, the amount includible in gross income as a result of the conversion will not be taxed in 2010, but instead will be taxed one-half in 2011 and one-half in 2012.
Two New Ways to Fund an IRA

Members using CU AnyHour, the Credit Union's web banking service, may make contributions to their IRA savings accounts online by choosing the TRANSFER tab. Current Year contributions may be made by selecting MAKE TRANSFER TODAY. Because Prior Year contributions require written authorization, selecting IRA PRIOR YEAR TRANSFER REQUEST will take members through a secure messaging process to request that the transfer be made and reported for the previous year. Contact a Member Service Officer to make a contribution to an IRA term certificate.

Direct Deposit of Federal Tax Refund
The Pension Protection Act of 2006 will permit members to allot their directly deposited federal tax refund to their IRA. Because the Credit Union operating system restricts Automated Clearing House (ACH) transactions to checking and primary savings, members wishing to exercise this new option must direct their funds to their primary savings accounts for further transfer to their IRAs. Refunds on jointly filed returns may be placed into the IRAs of either or both spouses. As always, IRA holders are responsible for ensuring their contributions do not exceed their annual limitations and that Prior Year contributions are deposited by the tax return due (without regard to extensions). Members wishing to use this method for funding an IRA should follow the instructions below.

  1. Whether making a Current Year or Prior Year contribution, notify the Credit Union in advance of the submission of your tax return of the contribution amount and the year for which the deposit is intended. This information may be provided to the Credit Union by:
    1. Mailing it to:
      United States Senate FCU
      Attn: IRA Department
      PO Box 77920
      Washington, DC 20013
    2. Faxing it to:
      IRA Department
    3. Sending a Secure Message through CU AnyHour: Select SERVICES tab, Select MENU tab, Select GENERAL INQUIRY TAB
  1. Take care to complete IRS documents with accuracy. Incorrectly entered routing and/or account information could result in the return of funds to the IRS where that portion of the refund will be reissued as a check. Complete tax documents with the following information:
    1. Check the box for Savings
    2. The Credit Union Routing Number is 254075250
Enter the Account Number as it appears on the Credit Union statement. Do not use the account number on the bottom of check (as directed by the IRS) if the funds are for direct deposit into an IRA.
Deposit Insurance Increase for IRA/Keogh
ncuaEffective April 1, 2006, the NCUSIF deposit insurance limit for individual retirement accounts (IRAs) and Keogh accounts at credit unions were increased to $250,000. This coverage is separate from the insurance on the person's other accounts at the credit union. Insurance coverage for other share and deposit accounts will remain at $100,000.

FDIC is making a similar increase in the deposit insurance coverage of IRA and Keogh account at banks and mutual savings banks.

Download the Special Bulletin "NCUA Increases Retirement Insurance Coverage" (PDF)

For more information visit
Routing Number: 254075250
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