Invest In You Today – 

Make a direct rollover or direct transfer from an IRA at another financial institution to an IRA with Northwest Federal for these great benefits:

FOR A LIMITED TIME

  • Earn 3.00%1 APY for 30 months when you open a JOURNEY IRA certificate
  • Receive a CASH incentive2 

Cash Incentive Chart for IRA Direct Transfer or Direct Rollover

OPEN AN IRA TODAY!

It's Not Too Late to Make Your 2018 Contribution3 

For Traditional and Roth IRAs, the 2018 annual contribution limits are:

  • $5,500 for ages 49 and below
  • $6,500 for ages 50 and above


Start Saving For Your Retirement. Open an IRA today.

It's never too early to plan for your retirement. Good financial plans include securing your financial future. Northwest Federal offers Individual Retirement Accounts (IRAs) with competitive rates and no plan administration fees. Dividends are compounded daily and credited to your account monthly. IRAs may also help you save for your child’s education and reduce your taxes3.

And, you can rest easy knowing that IRAs are federally insured to at least $250,000 by the National Credit Union Share Insurance Fund.

  • Contribute to your Northwest Federal IRA Savings at any time – you can even set up automatic deposits.
  • Open an IRA Certificate – with a minimum deposit of $1,000 you choose the term ranging from 90 days to 5 years.

For assistance, contact us:

 


1 APY = Annual Percentage Yield. Fees may reduce earnings on the account. A penalty may be imposed for early withdrawal. Rates are current as of 2/01/2019 and subject to change without notice. Minimum $25,000 balance to open Traditional IRA, Roth IRA, SEP, and ESA. Not eligible for bump rate. Not eligible for Add-on Certificates. At maturity, this certificate will rollover into a 12-month IRA Certificate. This is a limited time offer and may be combined with the offer for the IRA Cash Incentive ending on April 15, 2019.
 
2 This is a limited time offer and may be combined with the 30-month certificate. Cash incentive is available on a rollover or direct transfer from an IRA or rollover or direct rollover from a qualified employer sponsored retirement plan such as a 401k, TSP or 403b. The cash incentive will be from $100 to $500 based on the total amount of eligible rollovers and transfers from another financial institution you deposit from February 1, 2019 through April 15, 2019. Only IRA rollovers and direct transfers qualify. Funds must be deposited by April 15, 2019 in order to receive cash incentive. Cash incentive will be deposited directly into your Northwest Federal Primary Savings account by June 30th for those that qualify who still have the accounts opened in the original member's name (non-transferrable for decedent accounts). Cash incentive will be reported to the IRS as interest.
 
For full disclosure of these limited time offers, click here. 
 
3 Consult your tax advisor regarding how contributions may be tax deductible and various IRAs relate to your tax situation.

Roth IRA and Traditional IRA

  Roth IRA Traditional IRA
Who can contribute?

You're eligible if you earn compensation and your modified adjusted gross income (MAGI)* is less than the limits set by Congress.

If your MAGI is too high to contribute the annual contribution limit, you may be able to make a smaller contribution.

 Anyone under age 70 1/2 who has income from compensation (or who is filing jointly with a spouse who earns compensation).

Anyone who has received a distribution from a qualified retirement plan may decide to roll over the proceeds of the plan into an IRA.
How much can I contribute for tax year 2019?

You may be able to contribute up to $6,000;
owners age 50+ may be able to contribute up to $7,000.** 

Contributions cannot exceed compensation.

You may be able to contribute up to $6,000;
owners age 50+ may be able to contribute up to $7,000.**

Contributions cannot exceed compensation.
Who can make deductible contributions? No one can deduct contributions.  Deductible up to annual contribution limit:
  • Single individuals not active in employer retirement plans
  • Single individuals not in qualified retirement plans with MAGI below defined limits
  • Married couples with neither spouse active in an employer retirement plan
  • Married individuals active in qualified retirement plans filing joint tax returns with MAGI below defined limits
  • Married individuals not active in qualified retirement plans filing joint tax returns with spouses who are, as long as MAGI is below defined limits
What are the tax advantages?

Earnings are tax-deferred and withdrawals are tax-free if the account is open for 5 years and withdrawals are for a qualified reason 

 Earnings grow tax-deferred until withdrawn

Contributions may be tax deductible
When can I withdraw without restrictions? 

Regular contributions can be withdrawn
tax-free and penalty-free at any time

After the account has been opened 5 years, earnings can be withdrawn tax-free and penalty-free for any of these reasons:

  • age 59 1/2
  • disability
  • death
  • or a first-time home purchase***

Withdraw penalty-free for any of the following reasons:

  • Qualified high-education expenses
  • First-time home purchase***
  • Age 59 1/2
  • Disability
  • Qualifying medical expenses exceeding 7.5% of adjusted gross income
  • Payment to beneficiaries upon owner's death
  • Payment of health insurance premiums while unemployed for 12 weeks or longer

*Contributions and deductibility limits change frequently. Consult your tax professional regarding your individual circumstances.
**$6,000 and $7,000 are individual limits for all IRA contributions annually.
***Lifetime limit for exemption on first-time home purchase is $10,000. 

IRA Types

Traditional IRA

A Traditional IRA lets you save for your retirement goals while you receive immediate tax benefits. You can contribute to a Traditional IRA if you’re under age 70 ½ with earned income (or filing jointly with a spouse who has earned income).

View the comparison chart for contribution details, tax advantages, and withdrawal restrictions.

Complete applicable forms to open/change your Traditional IRA:  

Return completed forms:

  • Send forms via secure email or
  • Fax forms: 703-925-5125 or
  • Mail: NWFCU, Attn: IRA Specialist, PO Box 1229, Herndon, VA 20172

Roth IRA

The Roth IRA offers a unique savings opportunity. Unlike Traditional IRAs, Roth contributions are not tax-deductible because they’re made with after-tax dollars. Meaning, your withdrawal at retirement age can be made tax-free.

View the comparison chart for contribution details, tax advantages, and withdrawal restrictions.

Complete applicable forms to open/change your Roth IRA: 

Return completed forms:

  • Send forms via secure email or
  • Fax forms: 703-925-5125 or
  • Mail: NWFCU, Attn: IRA Specialist, PO Box 1229, Herndon, VA 20172

Coverdell Education Savings Account

A Coverdell Education Savings Account allows you to contribute up to $2,000 per year, per child. Earnings grow tax-free if distributions are used for qualified education expenses.

What happens if my child doesn’t go to college?

There are two options available to Coverdell beneficiaries when they reach age 30:

  1. They can close the account, keep the balance and pay tax on the earnings plus a 10% penalty
  2. Funds can be transferred to another family member under 30 years old, thereby establishing a new Coverdell plan.

Note: Income criteria applies; check the IRS website for details.

Complete the applicable forms to open/change your Coverdell ESA:

Return completed forms:

  • Send forms via secure email or
  • Fax forms: 703-925-5125

SEP IRA

Simplified Employee Pension (SEP) IRAs are designed for self-employed individuals and small business owners. SEP IRAs are:

  • Easy - quick to set-up and maintain
  • Convenient - no mandatory contributions or annual tax filings
  • Beneficial - tax-deductible contributions can help decrease taxes and tax-deferred compounding helps both employers and employees build retirement assets

Note:  All contributions made under a SEP IRA are employer contributions; employees cannot defer a portion of their salary to a SEP.

To learn more, contact our IRA Specialist.