IRA Withholding Notice and Election Requirements (Article)

 Whitepaper Icon With many of your members getting ready to take out their 2013 required minimum distributions (RMDs), now is the perfect time to brush up on the Individual Retirement Account (IRA) withholding notice and election requirements for credit unions. 

Withholding is an important compliance issue for IRAs. Like withholding from a paycheck, IRA distribution withholding prepays income taxes. Taxes withheld from IRA distributions are credited against an individual’s total tax liability for the year. So not only is withholding required by law, it’s a valuable customer service that you provide your members.

Read more of this article from The Federal Credit Union magazine (May/June 2013) by Jennifer Bassett, writer/editor, Ascensus, below.  

IRA Withholding Notice and Election Requirements (Credit Union Article) from NAFCU Services Corporation  

Ascensus is the NAFCU Services Preferred Partner for IRA, Retirement Plan, and Health Savings Account (HSA) Solutions Software, Training, Documents and Consulting. 


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Ascensus is the NAFCU Services Preferred Partner for IRA, Retirement Plan, and Health Savings Account (HSA) Solutions Software, Training, Documents and Consulting. More educational resources and contact information are available at www.nafcu.org/ascensus.

Also available: Establishing and Funding IRAs (Recorded Webinar) »