Certificates & IRAs

This is the Required Minimum Distribution for any Traditional IRA members that have reached the age of 70 ½. The IRS requires Traditional IRA owners to take a set amount out of their IRA’s each year once they reach 70 ½. This figure is calculated from their ending balance in their IRA on Dec. 31 and their age divisor from the IRS Uniform Lifetime Table. Their amount will vary each year based on their balance changing each year and their age divisor changing each year.

Contributions cannot be totaled for a prior tax year because IRA contributions can be accepted for a prior tax year from Jan. 1-April 15. It is the member’s responsibility to know what they have contributed for the tax year they are filing their income tax return. *ex. What this means is I could contribute $3000 during the calendar year 2014 and contribute another $3500 during the time frame of Jan. 1-April 15, 2015 and designate KFCU to accept this contribution for 2014 tax year.

This is the tax document that reflects any contributions they have made for a prior tax year; members receive this in mid-May of the following tax year.

This is the IRA tax document the member will receive in late January reflecting the amount they took out of their IRA for a prior tax year.

The member can request by signed fax, message board, or by visiting a FSR at any branch. If they are requesting by fax, or message board they will need to include in the request if it is a distribution from their Traditional IRA if they would like any federal taxes withheld and include the percentage (this will need to be 10% or greater) -OR- they can opt to state “ they do not want any taxes withheld” They will also need to include the amount to withdraw and how they want to receive the funds, ex. Deposit to savings, checking, HIMMA, or mail check.

If the member is only taking a distribution of their contribution amount they will not be assessed an early withdrawal penalty. However, if they are removing any dividends prior to the age of 59 ½ they would be subject to a 10% early withdrawal penalty and taxes on the dividends earned only. This usually only comes into play if the member is taking a full distribution of their Roth IRA funds.

If the member is under the age of 59 ½ and they withdraw from their Traditional IRA they will be liable for the 10% early withdrawal penalty in addition to any taxes they may owe based on their tax bracket. We are not able to determine what their tax liability may be since everyone’s income tax bracket is different.

If the member is over age of 59 ½ and they withdraw from their Traditional IRA there is no early withdrawal penalty.

Traditional IRA contributions “may” be tax deductible; taxes are paid when the member takes distributions. They will report any distributions when they file their income tax return.

Roth IRA contributions are never tax deductible, dividends on Roth IRA contributions are not taxed if they are distributed after age 59 ½.

No, as long as you are working and have reportable income you can contribute up to the maximum allowable each year as long as it does not exceed what you have earned for the year.

You cannot make a Traditional IRA contribution even if you still have earned income after age 70 ½. However you can make Roth contributions at any age as long as you are still working and have earned income.

No, you are not eligible to make contributions if you no longer have earned income. Social Security, Disability, or Retirement income do not qualify as earned income

The maximum allowable to contribute to an IRA or aggregate of all IRAs is:

  • $6000 under age 50
  • $7000 age 50 and olderWith earned income of at least the amount that you want to contribute

$25 if you have earned income.

If the withdrawal does not reduce the certificate funds below the required minimum balance for this type of certificate, the member shall forfeit at the certificate rate an amount equal to the lesser of:

  1. All dividends for 90 days from the amount withdrawn for certificates with a term of 1 year or less; or all dividends for 180 days on the amount withdrawn for certificates greater than 1 year; or
  2. All dividends on the amount withdrawn since date of issuance or renewal.

If the amount withdrawn reduces the certificate funds below the required minimum balance for this type of certificate, the entire certificate will be canceled and the member shall forfeit at the certificate rate* an amount equal to the lesser of:

  1. All dividends for 90 days on the entire amount of the certificate if the certificate is for a term of 1 year or less; or all dividends for 180 days on the entire amount of the certificate if the certificate is for a term of 1 year or more; or
  2. All dividends on the entire certificate since the date of issuance or renewal.

* The term “certificate rate” also includes the “bump rate”, if applicable, when calculating the early withdrawal penalty.

A penalty will not apply if the withdrawal is made subsequent to the death of any owner of the certificate.

Checking Accounts

Yes, you may suspend your participation in Smart Change at any time by calling us. The change will take effect on the same day. Funds already accumulated will remain in your Smart Change account and continue to earn 2% in dividends until you opt to withdraw or transfer those funds out. If the checking account is closed, the Smart Change account will close and the funds will be moved into your primary share.

Yes, each debit card linked to your checking account must have the same Smart Change status.

If your account balance is insufficient to cover the entire amount of your automatic Smart Change transfer, we will only transfer the amount of funds up to a $0.00 (zero) balance.

Example: Your checking account balance is $1.00. Your round up funds for that day totals $1.50. In this case, Smart Change will only transfer $1.00 to your Smart Change savings account. If your account has a negative balance, the entire Smart Change transfer for that day will be skipped.

NOTE: There are no “catch up” transfers for skipped transactions due to an insufficient balance. Transfers can only occur on the same day that your debit card purchases post. Please also be aware that although your Smart Change transfer amount will be adjusted (or skipped) for an insufficient or negative balance, your actual purchase amount will still post even if it results in an overdraft on your account.

Each debit card purchase will still appear on your account for the actual amount of the transaction. At the end of each business day, one Smart Change transfer will be made for the total of the rounded up difference for each of your debit card purchases posted on that day. This transfer will appear as on your account as a single line item transaction.

Example:
Day 1 Debit Purchase: Gas $28.15
Day 1 Debit Purchase: Grocery $55.48
Day 1 Debit Purchase: Amazon $44.75
Day 1 Smart Change Transfer to Savings: $1.62 (.85 +.52 +.25)

Yes, you may make up to 6 withdrawals per month by calling or visiting a branch.

No. Smart Change savings accounts can only receive funds via automatic system transfers resulting from your debit card purchases.

You can order checks online. You will need your routing number, account number, and zip code.

No. To open a checking account members are required to have a savings share account with a minimum of $5 at all times.

Credit Cards

Want to take advantage of Keesler Federal’s low rates? You can transfer up to your Keesler Federal credit card limit from another credit card. The best part? We don’t charge any balance transfer fees!

Fill out our Balance Transfer form to get started.

Due to the different disclosures for each card, the members who wish to convert to a new card type must sign a new application. Once the new account is opened, the balance on the existing credit card account will be transferred to the new card.

The APR will be determined by the risk score assigned to the credit report pulled at the time the loan application is processed.

Up to $25,000.

  • Late fee: Up to $25.00 after payment is 10 days late
  • Returned Item fee: $25.00 per return item
  • Cash Advance: $ 5.00
  • Credit Card Statement: $2.00
  • Credit Card Convenience Check Stop Pay Fee: $25.00 per request

The payments for credit card accounts are calculated at 3% of the balance plus any over limit amount. Credit Life and Credit Disability is calculated and added each month based on the balance of the account at the time statements run.

Savings Accounts

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No, members are not required to have any other accounts to open a savings account. However, to open a checking account members are required to have a savings share account with a minimum of $5 at all times, which can be utilized as a savings account.

Minimum $5.00 deposit to open. Keesler Federal will deposit the first $5.00 for all new members up to 12 months of age.

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