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Fall Extra Credit 2020

UVA Community Credit Union

Fall 2020 - In This Issue

Our Community: Sports Fans Unite!

Announcements: Introducing Financial Tools

Did You Know? Swap & Drop - Auto Rates as Low as 1.49% APR*

How-to Tips: Consider a Roth Conversion for Tax-Free Income 


Our Community
Sports Fans Unite - College Football is Back!

 

 

 

 

 

 

 

 

While Scott Stadium looks a little different on game day, the Credit Union is finding ways to show our support as a proud official partner of UVA Sports. This partnership continues to help provide our community with general economic benefits and promotes civic pride for our hometown.

With fewer spectators in the stadiums, the Credit Union is meeting fans on the UVA Sports Mobile App where we have been highlighted as a sponsor of UVA Football Trivia and Football Player of the Game. Don’t miss any of the fun and download the app today!

To show our support in the stadium, you will find the Credit Union logo on a seat tarp that spans over nine feet wide and our logo is painted on the hillside in the end zone. While we patiently wait for friends, families, and fans to attend games again rest assured that our Credit Union continues to be a proud partner of UVA Sports.

Go Hoos!


Announcements
Introducing Financial Tools

 

 

 

 

With Our New Financial Tools
We help make your financial goals more attainable.

There are a lot of details to keep track of in our daily lives. UVA Community Credit Union makes monitoring and managing your financial accounts seamless.

It's Free and Easy to Use!

  • View your dashboard - it includes all of your accounts, even accounts held with other financial institutions*
  • Manage your spending and debts
  • Calculate your net worth
  • See spending trends over specific time periods to better manage your cash flow

Get started now by clicking on Financial Tools at the top of your Online Banking session.

Learn more

*Some limitations apply.


Did You Know?
Swap & Drop - Auto Rates as Low as 1.49% APR*  

 

 

 

 

 

 

 

Do you have a loan at another institution on a non-commercial car, truck or van? Bring us the paperwork for your current, non-UVA Community Credit Union loan and we could drop your interest rate by up to 2% APR* to as low as 1.49% APR*. Apply today and save!  

Find out how much you can save by switching your non-credit union loan to us!

*APR = Annual Percentage Rate. Effective 8/28/2020. Limited time only. Loans must be funded within 30 days of application with UVA Community Credit Union to be eligible. Existing UVA Community Credit Union vehicle loans are not eligible for offer. Minimum finance rate for this special is 1.49% APR for loans up to 36 months. Maximum loan term is 72 months. Vehicle model ten years and newer. 1.49% payment example: 36 monthly payments of $28.43 per $1,000 borrowed. 1.99% APR payment example: 72 monthly payments of $14.75 per $1,000 borrowed. No other discounts apply. Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications and collateral conditions. Not all applicants will qualify for the lowest rate. All loans subject to credit approval. Other restrictions may apply. Minimum account opening deposit of $45 is required for a full service account. This includes a $5 membership fee. Membership eligibility required.


How-to Tips
Consider a Roth Conversion for Tax-Free Income

The combination of lower tax rates and lower asset values could make this a good time to convert assets from a traditional IRA to a Roth IRA. Converted assets are subject to federal income tax in the year of conversion, which might be a substantial tax bill. But if all conditions are met, the Roth account will incur no further income tax liability for the rest of your lifetime or the lifetimes of your designated beneficiaries, no matter how much growth the account experiences.

Tax Tradeoff
The logic behind deferring taxes on retirement savings is that you may be in a lower tax bracket when you retire, so a current tax deduction might be more appealing than tax-free income in retirement. However, lower rates set by the Tax Cuts and Jobs Act may have changed that calculation for you. A cost-benefit analysis could help determine whether it would be beneficial to pay taxes on some of your IRA assets now rather than in retirement. One strategy is to “fill your tax bracket,” meaning you would convert an asset value that would keep you in the same tax bracket. This requires projecting your income for 2020.



 

Lower Values, More Shares
If assets in your traditional IRA have lost value, you will pay income taxes on a lower asset base when you convert. As long as you’re traditional and Roth IRAs are with the same provider, you can typically theoretically convert more shares for each taxable dollar and would have more shares in your Roth account to pursue tax-free growth. Of course, there is also a risk that the converted assets will go down in value. You may have the option to take taxes directly out of your converted assets, but this is generally not wise.

Two Time Tests
Roth accounts are subject to two different five-year holding requirements: one related to withdrawals of earnings and the other related to conversions.

For a tax-free and penalty-free withdrawal of earnings, including earnings on converted amounts, a Roth account must meet a five-year holding period beginning on January 1 of the year your first Roth account was opened, and the withdrawal must take place after age 59½ or meet an IRS exception. If you have had a Roth IRA for some time, this may not be an issue, but it could come into play if you open your first Roth IRA for the conversion.

Assets converted to a Roth IRA can be withdrawn free of ordinary income tax at any time (because you paid taxes at the time of the conversion), but a 10% penalty may apply if you withdraw the assets before the end of a different five-year period, which begins on January 1 of the year of each conversion, unless you are age 59½ or another exception applies.

Even if you are close to retirement or already retired, a Roth conversion can make sense to provide tax-free income. Unlike a traditional IRA, Roth IRAs are not subject to required minimum distribution rules during the lifetime of the original owner.* The longer your investments can pursue growth, the more advantageous it may be for you and your beneficiaries to have tax-free withdrawals.

All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful.

*Spouse beneficiaries can treat an inherited retirement account as their own, whereas most nonspouse beneficiaries must withdraw all assets within 10 years of the original owner’s death; Roth distributions would be tax-free.

For more information, please call the Member Wealth Management Coordinator today at (434) 964-2046 to schedule an appointment.

NOT A CREDIT UNION DEPOSIT; NOT NCUA INSURED; NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY;NOT GUARANTEED BY THE CREDIT UNION; MAY GO DOWN IN VALUE

This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2020 Broadridge Investor Communication Solutions, Inc.

Securities, Investment Advisory and Financial Planning services offered through qualified registered representatives of  MML Investors Services, LLC, Member SIPC: 222 Central  Park Ave Suite 1100 Virginia Beach VA 23462 (757) 490-9041Call: (757) 490-9041.

Member Wealth Management is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies.

We have individuals licensed to sell insurance products in the following jurisdictions: DC, DE, GA, MD, NC, NJ, OH, RI, TX, UT, VA, WA

We have individuals registered to offer securities in the following jurisdictions: DC, DE, GA, MD, NC, NJ, OH, RI, TX, UT, VA, WA

CRN202109-253458

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