NFCU tIRA CD - How to fund?

[CardsFan]

Well, I got accepted as a member based on my dad serving during WWII.

Now trying to figure out how to open and fund this CD. I intend to fund with a transfer from cash in my brokerage tIRA account.

From what I can find on the website, it looks like they have a paper form that you can use: https://www.navyfederal.org/pdf/applications-forms/ira-certificates/NFCU_624.pdf . But they say it can take 2 to 6 weeks.

Is there a way to do a direct electronic transfer? How have others done this?

Thanks in advance for your help.

 

[ShokWaveRider]

I funded my Regular Cash CD by opening a regular checking account then setting up an ACH to Vanguard and then transferring $$$ to NFCU.

You cannot do ACH to Savings.

 

[CardsFan]

I funded mine by opening a regular checking account then setting up an ACH to Vanguard and then transferring $$$ to NFCU.

You cannot do ACH to Savings.

So, you transferred out a tIRA to the NFCU regular checking account, and then into the tIRA CD? I guess this OK within the IRS 60-day window, but did it create any issues when filing taxes?

Is this how others have done it? Or did you go the paper transfer route? Or is there another way?

 

[ShokWaveRider]

So, you transferred out a tIRA to the NFCU regular checking account, and then into the tIRA CD? I guess this OK within the IRS 60-day window, but did it create any issues when filing taxes?

Is this how others have done it? Or did you go the paper transfer route? Or is there another way?

No it needs to be a comparable account at NFCU, sorry my funds were not in a tIRA.

Best to call them tomorrow they were really helpful to me.

When I did my IRA with SpaceCoast CU, I had to do it by check, too over a week because the IRA institution dragged their heels.

 

[RetiredAndLovingIt]

I went into a Navy Federal Branch and they prepared the paperwork and Fedex'd it to my credit union. I also scanned and e-mailed them a copy and they cut the check the next day and Navy had it within another 2 days. I think they quote up to 6 weeks because many financial institutions drag their feet when processing IRA paperwork, Synchrony Bank I'm talking about you and the 3 week processing delay that you put me through. US Alliance is really quick to process IRA disbursements, I've had great luck with them but I hate to pay a $3 monthly trustee fee.

 

[CardsFan]

No it needs to be a comparable account at NFCU, sorry my funds were not in a tIRA.

Best to call them tomorrow they were really helpful to me.

When I did my IRA with SpaceCoast CU, I had to do it by check, too over a week because the IRA institution dragged their heels.

Thanks for the clarification. I'll give them a call tomorrow. Worst case is, I get a check from my broker, made out to NFCU, and hand deliver it. There is a branch 40 miles away. I just don't want to be caught in transfer limbo by filling out a form and hoping both sides work quickly, and then lose the CD.

 

[jazz4cash]

I’m in the process of consolidating a few IRA CDs from other institutions. You have the right form but I would call them as they are generally very helpful. Sometimes I call late at night. It really can take 4 weeks or more and in my case the delay was at NFCU IRA Dept. For my next xfer I will fax the form directly to the NFCU IRA Dept and follow up with a phone call. Secure messaging works well also but takes longer. It really helps to have an IRA share account to move funds into before selecting the CD you want.

 

[CardsFan]

I’m in the process of consolidating a few IRA CDs from other institutions. You have the right form but I would call them as they are generally very helpful. Sometimes I call late at night. It really can take 4 weeks or more and in my case the delay was at NFCU IRA Dept. For my next xfer I will fax the form directly to the NFCU IRA Dept and follow up with a phone call. Secure messaging works well also but takes longer. It really helps to have an IRA share account to move funds into before selecting the CD you want.

Thanks. I'll look at the IRA share account. At least, that way, if I miss a deal on a CD, I can move elsewhere, if needed.

I am going to call tomorrow, but, at this point, I am leaning toward making a drive. I'm retired. I got the time.

 

[pb4uski]

I did this back in August. I filled out a Traditional IRA Application (2 pages) and a IRA Transfer or Direct Rollover form (2 pages)

https://www.navyfederal.org/pdf/applications-forms/ira-certificates/NFCU_602.pdf

I think I then scanned them and uploaded them to their website in their secure messaging application and they took it from there. YMMV

Looks like it took a little less than two weeks for the transfer to happen.... a direct transfer from Vanguard to Navy Federal.

When does the CD special expire?

Since it is an add on CD if you are really in a hurry you can start it for $50 charged to your credit card, wait for the direct rollover process to happen and then withdraw the minimal funding as an excessive contribution.

I did that with another CU later in 2019.. started it over the phone for $500 charged to my credit card, waited for Vanguard to do the transfer and then had the CU move the $500 back to savings as an excessive contribution (I don't have any earned income).

 

[REWahoo]

I did this back in August. I filled out a Traditional IRA Application (2 pages) and a IRA Transfer or Direct Rollover form (2 pages)

https://www.navyfederal.org/pdf/applications-forms/ira-certificates/NFCU_602.pdf

I think I then scanned them and uploaded them to their website in their secure messaging application and they took it from there. YMMV

Looks like it took a little less than two weeks for the transfer to happen.... a direct transfer from Vanguard to Navy Federal.

I did the same last February but completed all the paperwork in person at a NFCU branch rather than online. That was not only time consuming, it was also frustrating as the branch where I opened my account does not handle IRA account openings so I had to drive to another branch to do that. And then the transfer took forever - five (5) weeks. Way too long.

 

[Another Reader]

Thanks. I'll look at the IRA share account. At least, that way, if I miss a deal on a CD, I can move elsewhere, if needed.

I am going to call tomorrow, but, at this point, I am leaning toward making a drive. I'm retired. I got the time.

Make sure the branch where you want to go is not on a military base. I was prepared to drive to Monterey from the Bay Area until I saw that the branch was on a secured installation and I would not be able to get in.

I drove by a newly opened branch in the Chandler-Gilbert area when I was last in Phoenix. Odd that a branch would be in the middle of the desert, nowhere near any naval base...or navigable water...

 

[CardsFan]

OK. Talked NFCU. Looks like I can upload the forms, like pb4uski did, and that would be quickest.

Another question: Any issues with doing a wire transfer to NFCU (beside the $25 fee my brokerage charges)?

There is no specified end date for this special rate (I asked when I called), so I want to make it happen ASAP.

Also, I will put it into an IRA savings account, and then transfer to the CD (as recommended above). That way, if the rate goes poof, I can always reverse the transaction.

 

[pb4uski]

Did you talk to them about opening a IRA CD on the phone and putting it to your credit card or direct debit from your bank to lock in the special rate? IIRC the minimum is $50... so that would lock it in and you can later withdraw it as an excessive contribution if you don't qualify to contribute to an IRA. (See post #9).

 

[CardsFan]

Did you talk to them about opening a IRA CD on the phone and putting it to your credit card or direct debit from your bank to lock in the special rate? IIRC the minimum is $50... so that would lock it in and you can later withdraw it as an excessive contribution if you don't qualify to contribute to an IRA. (See post #9).

I saw your post and, like you, I have no W-2 income. Is it a big deal to withdraw the excess contribution from the CD? Did they charge you penalties (not that a few bucks matters)? I would rather keep it simple, but you are right, this would lock in the CD rate.

 

[pb4uski]

No, as it wasn't in there long and I'm over 59 1/2 so early withdrawal penalty (it was with a different credit union). I just filled out an excessive distribution form and they took it out and put it in my share account and then when I got down to Florida I went to a local branch and withdrew it for spending money.

 

[jazz4cash]

Waiting and waiting for 2 transfers to complete at NFCU. Been about 2 weeks so far.

On 2nd thought, wish I had requested checks made payable to NFCU and hand delivered them. Some places refuse to issue the checks and NFCU frowns on doing it that way sometimes but I wish I had tried.

 

[CardsFan]

OP here with an update.

It took about 2 weeks to transfer the money to NFCU, and then another week to get it into the CD (I initially transferred into a tIRA savings account, and then moved it to the CD), but I did manage to get the 37 month 3% tIRA CD.

I have to say that phone support from NFCU has been outstanding. They even back dated the final transfer, so I started getting the CD interest from the day of the initial transfer to NFCU.

In the meantime, I had a brokerage CD mature this week, so I get to do this all over again, to max out the CD.

 

[jazz4cash]

That’s good to hear. I have also received outstanding support using their secure message app. I just finished scraping some dividends off several IRA CDs at various credit unions to use the NFCU add-on feature. It took 2-3 weeks on average and multiple requests in some cases. Next time I’ll try the check-in-hand approach.