New Year IRS Rule Change to Affect IRA Rollovers
- Created on Monday, 15 December 2014 06:07
- Written by Joe Mecca
A long-standing Internal Revenue Service rule is changing in 2015, and it may have an impact on what you can do with your IRAs.
Effective January 1, 2015 the IRA One-Rollover-Per-Year rule is changing in response to a U.S. Tax Court ruling. Earlier this year, the court ruled that a taxpayer is limited to one tax-free rollover per 12-month period, regardless of the number of IRAs they have. Previously, the rule was interpreted to allow one IRA rollover per 12-month period for each IRA you own.
This rule includes all IRAs (Traditional, Roth, SEP, CESA) except HSAs, which cannot be rolled over. You may still perform an unlimited number of transfers.
Members should consult a tax advisor and be aware of potential tax implications before rolling over an IRA.
Financial Checklist to Get Organized for 2015
- Created on Thursday, 11 December 2014 14:28
- Written by Roberta Pescow, NerdWallet
The end of the year brings the excitement of holiday celebrations, but it’s also the time to deal with important financial maintenance. Although getting your fiscal affairs in order isn’t as much fun as opening presents or ringing in the New Year, this checklist will help you increase your assets, improve tax outcomes and prosper in 2015.
1. Organize tax documents
Create a folder for tax documents so when year-end statements arrive, you can put them in one place. In the meantime, gather and file existing tax paperwork such as receipts for charitable donations or medical expenses, asset sales showing gains or losses and real estate transactions. A good basic tax checklist can be found here.
2. Maximize deductions
To ensure your charitable donations can qualify for 2014 tax deductions, make them before the end of the year. Don’t forget to get proper documentation. If you own a business or rental property, you may benefit from making improvements or buying capital equipment before Dec. 31 as well. Investors facing capital gains taxes should weigh selling losing investments before the end of the year to offset gains. Also, now’s the time to consider making additional pre-tax contributions to a retirement plan.
3. Create a budget
Set the stage for a successful New Year by setting up and sticking to a sound budget. Start by listing all income, including wages, investment gains, rents and fees for services rendered. Then set down fixed expenses such as monthly mortgage or rent payments, installment loans, utility costs and insurance. Identify variable expenses such as toiletries and household items, and discretionary spending like entertainment. Total up any outstanding credit card or other revolving debt and determine how much must be paid each month to eliminate it over the year. Once you’ve got that financial snapshot, set your goals and make any necessary adjustments needed to stay on target.
4. Reduce debt
If you’re carrying sizable debt, it makes sense to lower or eliminate this burden by committing a set monthly amount toward paying it off. If what you owe becomes overwhelming, debt consolidation through personal loans, home equity financing or balance transfers can simplify things, reduce monthly payments and make it easier to establish a point at which you’ll be free of it entirely.
5. Create a cushion
Having something extra put away can be vital in the event of an unexpected job loss or medical expense. Opening an emergency savings account helps build this important cushion. Aim for a fund that can cover six months of normal expenses. If you have financial goals that require saving, create separate accounts for each.
6. Evaluate retirement and estate plans
If you’ve got a 401(k) retirement plan, try to contribute as much as your employer will match, and review how it’s invested. If you have a will, review it and make any needed changes. If you don’t have one, consider creating one. Also, update beneficiary information on such things as insurance policies, bank and retirement accounts.
7. Get help
If year-end financial organizing is overwhelming, you don’t have to go it alone. Financial institutions such as Coastal Federal Credit Union can help. You’ll be glad you took the time to get organized so you can relax and savor the joys of the season.
Roberta Pescow, NerdWallet
Coastal Establishes Digital Banking Division
- Created on Thursday, 04 December 2014 09:24
- Written by Joe Mecca
Coastal Federal Credit Union has announced the creation of a new Digital Banking division to lead the organization in evolving its online and mobile banking product offering.
The credit union currently provides members with a full slate of digital services including: mobile banking, mobile check deposits, online banking, online bill payments, peer-to-peer payments, online account opening and loan applications, and electronic statements and notices. By establishing the new division, Coastal intends to create dedicated resources solely focused on taking those systems to the next level.
“We’re thinking beyond upgrades, and are focusing on next-generation innovation,” said Kris Kovacs, Coastal’s SVP of Operations. “The digital systems we have are on par with most of the industry -and were best-in-class at the time we introduced them- but technology evolves rapidly. We want to be nimble and adaptable in our approach, so we can keep up with the growing demand for providing our members with a feature-rich, customizable and consistent digital banking experience.”
The Digital Banking team will initially consist of a vice president, David Faleski; a manager, Lesley Vaughan; and a director, Richard Sowell, and will soon add a business analyst position. Faleski and Vaughan most recently served the organization as part of the Business Transformation team, and were an integral part of Coastal’s conversion to a new core processor. Each was responsible for implementing new member-facing and back office systems, including those that handle online account opening and loan applications, as well as integrating existing systems like Coastal’s online and mobile banking platforms. Sowell’s most recent role was a consumer lending business intelligence analyst, and he brings a wealth of analytics and information technology experience to the team.
Mobile Banking Upgrades
- Created on Monday, 24 November 2014 16:33
- Written by Joe Mecca
UPDATE (12/4/14): The upgraded apps are now available!
We’re excited to share with you that updated versions of our iOS and Android mobile banking apps will be available during the week of December 1. You will either be prompted to download the update within the app store on your phone, or it will automatically update if you’ve set your phone preferences to auto-update.
This update includes several new features, along with a number of design changes.
- New feature: A drop-down menu icon in the upper left of the screen replaces the bottom buttons, and opens up a left hand navigation menu.
- New Feature: an “Account Summary” tab has been added, which displays a bar graph with the monthly cash flow totals for that account.
- The Account Detail screen has been redesigned, and now displays tabs for activity, summary and search.
- Inside of the Account Activity or Summary views, left and right arrows allow you to quickly scroll through all of your accounts.
- New features: “Add a New Account” and “Apply for a Loan” have been added as menu options. This launches our new account and loan applications inside the app, and allows you to open checking, savings, certificate or money market account, or to apply for a credit card, vehicle loan or personal loan.
- The Locations feature has a new appearance, with the functionality that members already know and expect.
- The app has been given an overall updated appearance.
We hope you enjoy the new updates.