Create AFT for IRA Distribution
These steps explain how to schedule an automated funds transfer (AFT) for an IRA certificate.
-
You can create an AFT for an IRA certificate in the same way that you create one for an IRA savings account.
-
The system will perform the scheduled transfer, withhold any scheduled taxes, and will not charge a penalty for certificates.
-
For tax withholding, you can specify either a percentage or a specific dollar amount for Federal and/or state backup withholding.
-
The transfer will take funds from the principal balance of the CD if necessary.
-
Launch Tool #884 Update Auto Transfer Information.
-
On the Funds Transfer Maintenance screen, click Add AFT.
-
In the Transfer FROM account field, enter the base and suffix of the account from which you'd like funds transferred.
-
In the Transfer TO account field, enter the base and suffix of the account to which you'd like funds transferred.
-
Click the forward arrow.
-
On the Select AFT Transfer Type screen, select Let me specify an amount to transfer every time.
-
Click the forward arrow.
-
On the Automatic Funds Transfer Maintenance screen, select the desired options:
-
Frequency
-
Next transfer date
-
Transfer day
-
End transfers
-
-
Click the forward arrow.
-
On the AFT From an IRA or HSA Account screen, select the desired options according to IRS guidelines.
-
Select the applicable IRA posting code.
-
Check the IRA payout distribution box.
-
If applicable, enter the correct percentage or dollar amount in the Federal income withholding and State income withholding fields.
-
These amounts are withdrawn from the member’s account in addition to the transfer amount entered on the previous screen.
-
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.
-
These amounts and the transfer amount will post as separate transactions.
-
-
-
Click the forward arrow.