AFT to an IRA or HSA Account

Screen ID:

Screen Title:

Panel Number:

UATTR2-04

3886

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This screen appears after the secondAFT creation screen when an account is either an HSA or IRA account is used in the transfer.

NOTE: Withholding percentages allow whole numbers only (such as 5% or 31%). If your state requires an odd percentage (such as 4.25% or 10.93%), then calculate withholding based on the payout distribution amount and enter that into the amount field instead.

If you allow your members to set up an auto-funds transfer (AFT) to take their RMD distribution directly from an IRA certificate, CU*BASE will allow funds to be pulled from the certificate's principal balance until the account is depleted. However, it’s important to remember that because of the way available balance is calculated for certificates (principal is not considered “available” for withdrawal, only dividends), the account might show a negative amount as the net available. You will need to make this clear to the member when setting up an RMD directly from a CD. If you wish to avoid this, we recommend moving funds from a certificate to an IRA savings account before setting up the RMD automated transfer.

Enter your information. If you have entered a Loan or LOC account for the To: account, you press Enter to move to the final screen.

Field Descriptions

Field Name	Description
IRA/HSA Code	If either of the transfer accounts is an IRA or HSA, this code is required to flag the transfer with the appropriate IRA or HSA deposit or withdrawal code for IRS reporting purposes. Use the $images\magnifyingglasslookup_shg.gif$ to search for the appropriate code.
IRA payout distribution	Check this checkbox if funds are being transferred from an IRA account for the purpose of IRA Payout Distribution. Leave the box unchecked for all other types of transfers. NOTE: This only controls whether backup withholding will be monitored or not; it does not control how distributions are made from the member's IRA accounts. SEE ALSO: Special Instructions for Transfers From Certificates
Fed income withholding % or amount	If this transfer is an IRA Payout Distribution, the member may choose to set up federal income tax withholding. The amount can be a fixed amount or a percentage of the Transfer amount. Example: If the member wants to transfer $1,500.00 (the gross amount) and the Federal withholding amount is $333.00, then the Transfer amount would be $1,500.00 and the Fed inc withholding amount would be $333.00. The system will post each amount as a separate transaction. (Using this example further, the member would receive a net transfer amount of $1,167.00) NOTE: Withholding percentages allow whole numbers only (such as 5% or 31%. If your state requires an odd percentage (such as 4.25% or 10.93%), then calculate withholding based on the payout distribution amount and enter that into the amount field instead. Configuration of the General Ledger account to which these funds are posted is done via Chart of Accounts Maintenance. Also refer to the booklet, Automated Funds Transfers (AFT) / Check Funds Transfers (CFT).
State income withholding % or amount	If this transfer is an IRA Payout Distribution, the member may choose to set up state income tax withholding. The amount can be a fixed amount or a percentage of the Transfer amount. Example: If the member wants to transfer $1,500.00 (gross amount) and the state withholding amount is $333.00, then the Transfer amount would be $1,500.00 and the State inc withholding amount would be $333.00. The system will post each amount as a separate transaction. (Using this example further, the member would receive a net transfer amount of $1,167.00) NOTE: Withholding percentages allow whole numbers only (such as 5% or 31%. If your state requires an odd percentage (such as 4.25% or 10.93%), then calculate withholding based on the payout distribution amount and enter that into the amount field instead. Configuration of the General Ledger account to which these funds are posted is done via Chart of Accounts Maintenance. Also refer to the booklet, Automated Funds Transfers (AFT) / Check Funds Transfers (CFT).