Savings & IRAs

IRA FAQs

• How can I open an IRA online?
  

  To request a new IRA online, start by visiting the APGFCU IRA Service Center, which will provide you with the required forms to open a new IRA. Once you have selected your IRA product and printed or saved the required forms, you can submit the request using our IRA Secure Form.

• How do I make an IRA withdrawal, transfer or rollover?
  

  Access our IRA Service Center to print and sign the appropriate form to service your existing IRA. You may return the form to APGFCU in any of the following ways:

  • Attach the form to a secure message within Online Banking.
  • Attach the form to our IRA Secure Form.
  • Return the form to a branch.
  • Return the form by mail to:
    APGFCU
    ATTN: Support Services
    P.O. Box 1176
    Aberdeen, MD 21001-6176

  You can also call our Member Service Center at 410-272-4000 (800-225-2555) to request a withdrawal.

• How does an IRA transfer differ from an IRA rollover?
  

  An IRA transfer occurs between retirement accounts of the same type. For example, moving funds from an IRA at one bank to an IRA at another bank would be an IRA transfer.

  Alternatively, an IRA rollover occurs between two different types of retirement accounts. For example, moving funds from a prior employer-sponsored retirement plan into an IRA would be an IRA rollover. With an IRA rollover, you can preserve the tax-deferred status of your retirement assets.

• How do I request common IRA forms for beneficiaries?
  

  You may request the beneficiary forms in the APGFCU IRA Service Center. Once your forms are ready, you may submit them through our IRA Secure Form.

• What is an IRS Form 5498?
  

  IRS Form 5498 reports IRA contributions (including any catch-up contributions), rollovers, Roth IRA conversions, required minimum distributions (RMDs), and the fair market value (FMV) of the account. This form is submitted to the IRS by APGFCU. You may also obtain a copy of your 5498 form through Online Banking or the mobile app after May 31 of each year.

  A Form 5498 will be sent for each IRA Tax Plan.  

  For example, if you have multiple Traditional IRAs but the beneficiary election is the same on each, only one tax plan would be established and only one Form 5498 will be sent. However, for every different beneficiary election, a new tax plan will be established and you will receive a Form 5498 for each tax plan.

  Required minimum distribution (RMD) reporting will also be reflected on this year’s Form 5498. Please be aware that if you receive more than one Form 5498 and are required to take a minimum distribution for 2024, the sum of all Form 5498 RMD amounts will total the required minimum distribution amount on your required minimum distribution notification.

• When is the IRS Form 5498 filed?
  

  IRA Form 5498 is mailed no later than May 31 of each year.

RMD FAQs

• How do I complete my RMD request?
  

  To obtain the required forms to complete your RMD request, access our IRA Service Center to print and sign the appropriate form. You may return the form to APGFCU in any of the following ways:

  • Attach the form to a secure message behind Online Banking.
  • Attach the form to our IRA Secure Form.
  • Return the form to a branch.
  • Return the form by mail to:
    APGFCU
    ATTN: Support Services
    P.O. Box 1176
    Aberdeen, MD 21001-6176

  You can also call our Member Service Center at 410-272-4000 (800-225-2555).

• Why did I receive a letter when I was set up for automatic payments of my RMD?
  

  APGFCU is required by law to notify IRA holders that an RMD must be taken regardless of the withdrawal method.

• Why does my RMD letter state that my RMD can be reinvested?
  

  If you do not immediately need the funds, you can reinvest the funds you withdraw from your IRA into a Required Minimum Distribution Certificate to continue growing your savings. You’ll get the same rate and maturity date as the IRA.

• What additional information do I need to know about RMDs?
  
  • A minimum distribution is required for Traditional IRA owners when they reach a certain age. 
  • The minimum distribution amount is determined based on the Uniform Lifetime Table provided by the IRS. A separate Life Expectancy Table is used if your beneficiary is either: (1) your spouse who is more than 10 years younger than you and your sole beneficiary; or (2) is not your spouse.
  • The fair market value excludes any contributions made to your IRA after December 31 of the prior year.
  • RMDs must be taken by the deadline or will be subject to a 25% excise tax by the IRS.
  • The deadline for first-time RMDs is April 1st of the year following the year a person turns 73 (i.e. If a person turns 73 in 2023, they are required to take their RMD by April 1, 2024). The deadline is December 31st of the current year for all other RMDs.

  For more information on RMDs, visit the IRS website.