Share Insurance

The National Credit Union Administration (NCUA) covers every Fire Police City County FCU members' deposit with federal deposit insurance that is backed by the full faith and credit of the United States government. This insurance is for at least $250,000 on share deposits, with an additional $250,000 in coverage for certain retirement accounts. In addition, your Credit Union provides private insurance through Excess Share Insurance Corporation (ESI), a property and casualty insurance company licensed in the State of Ohio. ESI provides up to $250,000 additional protection on member share accounts plus an additional $250,000 on Individual Retirement Accounts. By adding this coverage to our primary insurance limits, you can take comfort in knowing your funds are safe and secure with Fire Police City County FCU.

Further information is available at NCUA and ESI.

 


Investments


Share Certificates

  • Time accounts with the term you select
  • Higher rate of return on your investment
  • Minimum $500 Investment
  • Contact Us for our Great Share Certificate Rates
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Traditional IRA

Contributions
  • Earned Income
  • Prior to the age of 70½ years
  • Modified Adjusted Gross Income cannot exceed certain limits.
  • Higher limit if age 50 or older.
  • Contributions for each year can be made until the tax filing deadline in the following year (not including extensions).

Tax Year Annual Contribution Limit Additional "Catch-Up" Contribution for
owners age 50 and older
2008-2012 $5,000 $1,000 ($6,000 total)
2013 $5,500 $1,000 ($6,500 total)
2014 $5,500 $1,000 ($6,500 total)

Exception: Spousal Contributions. A compensated spouse can make a contribution to an IRA for a non compensated spouse. The total that can be contributed to his own and the spousal IRA is limited to the total of the compensated spouse's earned income or $4,000 whichever is less.

Transfers
  • Direct Transfer - This transaction is done entirely between the financial institutions, the member has no contact with the funds. These can be done any number of times in the year.
  • Rollovers - In this transaction, the member has use of the funds for up to 60 days. If the funds are deposited into an IRA within the 60 day period, there are no tax consequences. If not, the amount withdrawn will be taxable. This type of transaction can be done just once in a 12 month period.
Withdrawals
  • Normal Distributions - After 59½ years old, a member can take funds from the IRA with no penalty from the IRS. However the amount withdrawn is considered taxable income.
  • Required Distributions - When the member reaches 70½, they must begin taking a minimum amount out of the IRA each year. The first distribution must be made by April 1 following the year in which the member turns 70½.
  • Must be reported on the member's tax return.
  • Premature Distribution - A withdrawal done before the member reaches age 59½. These funds are taxable and the member must pay a 10% penalty tax for early withdrawal.
    Exceptions:
    • The penalty will not be imposed for the withdrawal due to death or disability; or if the member elects to take equal periodic payments over a 5 year period or until he reaches 59½, whichever is longer. This means that if the member is 56 years old, he will have to take periodic payments until he is 61. But if he is 46 years old, he will have to take the payments until he is 59½.
    • Members who are younger than age 59½ can avoid the 10% penalty when withdrawing for one of the following reasons:
      • Qualified first-time home buyer distributions.
      • Higher education expense distributions.
      • Distributions to pay for medical expenses that exceed 7.5% of adjusted gross income.
      • Distributions to pay for medical insurance premiums when unemployed.
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Roth IRA

Contributions
  • Earned Income.
  • No Age Restrictions.
  • Modified Adjusted Gross Income cannot exceed certain limits.
  • Higher limit if age 50 or older.
  • Contributions for each year can be made until the tax filing deadline in the following year (not including extensions).
Tax Year Annual Contribution Limit Additional "Catch-Up" Contribution for
owners age 50 and older
2008-2012 $5,000 $1,000 ($6,000 total)
2013 $5,500 $1,000 ($6,500 total)
2014 $5,500 $1,000 ($6,500 total)

Exception: Spousal Contributions. A compensated spouse can make a contribution to an IRA for a non compensated spouse. The total that can be contributed to his/her own IRA, and the spousal IRA is limited to the total of the compensated spouse's earned income or $8,000, whichever is less.

Transfers
  • Many IRA owners can convert their traditional IRAs to Roth IRAs, and take advantage of the possible tax- and penalty- free benefits not available in a traditional IRA. The key for taxpayers is determining whether or not they are eligible and whether or not a conversion is beneficial. To find out, contact your tax advisor.
Withdrawals
  • Must be reported on the member's tax return.
  • No minimum distribution required.
  • Unlike the traditional IRA, contributions to a Roth IRA are never tax deductible.  However, Roth IRA earnings are tax-free (that is, free from federal income tax) for account owners who meet a 5 year holding period and withdrawal the funds for a qualified reason.

    Qualified Distribution Reasons:
    • Normal Distribution - Age 59 1/2; or older.
    • Distributions made to a beneficiary upon the IRA owner's death.
    • Distributions attributable to the individual's being disabled.
    • Qualified first time home buyer distributions.
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Coverdell (Educational) IRA

Contributions
  • Does Not Require Earned Income
  • Whether or not a contribution is made to a qualified state union program for the child.
  • The maximum contribution is $2,000 per child.
  • Modified Adjusted Gross Income of the contributor cannot exceed certain limits.
  • Contributions for each year can be made until December 31st of that year.
  • Not aggregated with other IRAs.
  • Limit applies to all Education IRAs for the same child.
Withdrawals
  • In order to be tax-free, distributions must be used for the beneficiary's qualified higher education expenses incurred at an eligible higher education institution.

    Qualified Higher Education Expenses are:
    • Tuition, fees, books, supplies, and equipment required for the enrollment or attendance of the designated beneficiary at an eligible higher education institution.
    • Room and board are also eligible expenses if the student is enrolled at least half-time.

    Higher education expenses must be reduced by:
    • A qualified scholarship which is excludable from gross income.
    • An educational assistance allowance.
Individuals can also withdraw from their Traditional IRA and/or Roth IRA to pay for qualified education expenses. However, the total of all IRA distributions cannot exceed the actual expense.

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Health Savings Accounts

What are Health Savings Accounts?

You may have been hearing about Health Savings Accounts (HSAs) in the news as a way for individuals to pay for health care costs. But what are Health Savings Accounts?

HSAs are individual accounts which allow you to use pre-tax dollars to pay for future medical expenses. You will be able to deduct your contributions to your HSA, and the account earnings will accumulate on a tax-deferred basis. Distributions from your HSA are tax-free if they are used for qualified medical expenses. HSAs are designed specifically for individuals who have chosen a high-deductible health plan (HDHP).

To learn more, Contact Us for one of our HSA specialists.

Tax Year Single Coverage Contribution Annual Limit (Monthly Limit) Family Coverage Contribution Annual Limit (Monthly Limit) Over 55 Catch-Up Contributions
2011 $3,050 ($3,050/12) $6,150 ($6,150/12) $1,000 ($1,000/12)
2012 $3,100 ($3,100/12) $6,250 ($6,250/12) $1,000 ($1,000/12)
2013 $3,250 ($3,250/12) $6,450 ($6,450/12) $1,000 ($1,000/12)
2014 $3,300 ($3,300/12) $6,550 ($6,550/12) $1,000 ($1,000/12)

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