Fall Extra Credit 2018

UVA Community Credit Union

Fall 2018 - In This Issue

Our Community: Supporting Local Business

Announcements: International Credit Union Day

Did You Know? Get a Free Credit Report Annually

How-to Tips: Rules of a Rollover

Summer Mountains

Our Community

 

 

 

 

 

 

 

 

 

Supporting Local Business and the Financial Well-Being of Employees

As a not-for-profit member-owned financial institution, profits made are typically returned to our members in the form of low or no fee services, lower loan rates, and higher interest rates on deposits. Our mission is straight forward – to improve the financial capability of our members. One way we do this is to engage members of our community where they work.

Do you own a business or work in Human Resources for a local company? You may be interested in our Community Partner Group Program available to businesses within the area we serve. The program is designed to enhance the benefits package to your employees at no cost to your organization. Your employees will benefit from exclusive discounts, and free onsite financial education on a variety of subjects – credit building, saving for college, mortgage, and more. For employers, we enhance your benefits package and help reduce costs associated with employee financial stress.

Together, we improve the financial well-being of your employees and your workplace. LEARN MORE


Announcements

 

 

 

 

 

 

 

 

 

 

International Credit Union Day®

Since 1948, International Credit Union (ICU) Day® is celebrated on the 3rd Thursday of October. Traditionally, this is a day to reflect upon credit union history, and to celebrate YOU, our valued members.

May 1st, sixty-four years ago, a group of 40 University of Virginia Hospital administrators and staff held their first meeting to organize what would become the University of Virginia Community Credit Union. Our founders believed that by pooling resources, each member of the Credit Union had the chance for a better future. The driving force behind the creation of the Credit Union was Daniel D. Colcock, the hospital's administrative accountant. Colcock helped the Credit Union get off to a good start. By the close of business on December 31, 1954, the Credit Union had attracted 307 members and had assets totaling $10,269.49. Fast forward to today, our Credit Union has grown to over 70,000 members. Our field of membership has expanded to serve those who live, work, or own a business located in Charlottesville, Albemarle, Culpeper, Fauquier, Fluvanna, Greene, Louisa, Madison, Nelson, Orange, or Rappahannock

Join us on October 18th as we celebrate our history, our founders, and YOU, our valued member, for International Credit Union day. Visit your local branch on October 18 to enjoy the fesitivites. Thank you for being a part of something.


 Did you know?

 

 

 

 

 

 

 

 

Get a Free Credit Report Annually

On Nov 4, 2018, we will adjust our clocks for the return to standard time. We've made it a habit to use this as a reminder to check the batteries in our smoke detectors too. It would be wise to check your credit report as well.

Identify theft is on the rise. Checking your monthly financial statements for fraudulent charges is helpful, however you need to make it a habit to check your credit report at least once annually.

You’re eligible to get a free annual credit report. Visit AnnualCreditReport.com, the only source of your free credit reports authorized by law, for a copy of your report from each of the big three credit reporting agencies. You may want to consider staggering your requests throughout the year for consistent identity theft monitoring. For step-by-step instructions, click here.

Need help understanding your report? We're here for you. Schedule a one-on-one and learn how-to:

  • Identify the warning signs of identity theft
  • Correct name and address errors
  • Understand your credit score and how to improve it
  • Avoid surprises when applying for an auto loan or a mortgage

Schedule a one-on-one appointment today, call us at 434-964-2001, option 3.


mwm_logo.jpg 

How-To Tips Provided by Member Wealth Management

 

 

Rules of the Rollover

When you leave a job, you may have up to four options for any funds in your former employer's retirement plan: (1) leave the funds in the employer's plan, (2) roll them to a new employer's plan, (3) roll the assets to an IRA, or (4) take a taxable distribution.

Although there may be good reasons to choose any of these options, rolling the funds to an IRA enables you to maintain control regardless of your employment situation. IRAs typically offer a wider variety of investment choices than employer plans, and you can combine rollover funds with any other funds you already have in an IRA. Or you could open a new IRA to receive the rollover.

 

Doing It Direct

In order to avoid current taxation on the distribution, it is best to execute a direct rollover, also called a trustee-to-trustee transfer. In this type of transfer, you never actually take possession of the funds, thus retaining the tax-advantaged status.

To execute a trustee-to-trustee transfer, contact the trustee of the old plan and provide information regarding the trustee of the IRA that should receive the transfer. The trustee of the old plan may execute an electronic transfer to the new trustee, send a check directly to the new trustee, or send you a check made out to the new trustee. If you receive a check, you should mail it to the new trustee as soon as possible.

Indirect Rollover

If you receive the distribution in the form of a check made payable to you, your old plan is required to withhold 20% of the taxable portion of your distribution. This will be credited as withholding when you file your federal income tax return.

You can still execute a rollover of the entire distribution and preserve the tax-deferred status by making a deposit equal to the full distribution in an IRA within 60 days. But you'll need to make up the 20% that was withheld using other assets. For example, if your taxable distribution from the plan is $10,000, the plan will withhold $2,000 and you'll receive a check for $8,000. You can roll $10,000 over to an IRA, but you'll need to come up with $2,000 from other funds. Theoretically, you will receive the $2,000 as a tax refund when you file your return, assuming that all other tax liabilities are met.

Plan to Plan, IRA to IRA

In general, the rules outlined above also apply to rollovers from one employer plan to another, from one IRA to another, or from an IRA to an employer plan. However, you can make only one tax-free, indirect 60-day rollover from any IRA you own (traditional or Roth) to any other IRA you own in any 12-month period. Each additional rollover would be considered a taxable distribution, which is subject to ordinary income taxes plus the 10% early-withdrawal penalty for those younger than 59½.

This limit does not apply to direct rollovers (trustee-to-trustee transfers); nor does it apply to 60-day rollovers to or from an employer plan, or to conversions of traditional IRAs to Roth IRAs. The 20% withholding does not apply to distributions from an IRA, but you must still follow rollover rules to preserve the tax-deferred status.

For more information or to schedule an appointment with a Member Wealth Management Representative, please call 434-964-2001 ext 3074.

This information is not intended as investment advice and is not a recommendation for retirement savings.

Printer Friendly and PDF