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.
CU*BASE 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.
  1. These amounts are withdrawn from the member’s account in addition to the transfer amount entered on the previous screen.
  2. 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.
  3. These amounts and the transfer amount will post as separate transactions.
Click the forward arrow.

Learn More