Setting Up IRA Processing
Portico supports investments in IRA shares and certificates. Before entering any IRA activity, the credit union must specify what share and certificate numbers will be used for IRAs as well as other information using the following processing rules transactions:
The type of IRA account is specified in the IRA Processing field on the Share Profiles – Account Information tab and the IRA Processing field on the Certificate Profiles – Account Information tab. Valid values for the IRA Processing field are Traditional IRA, Roth IRA, and Coverdell ESA.
PorticoServices uses the IRA section on the Credit Union Profile – Shares tab to set up the processing options for IRAs.
| Require Deposit Codes |
If selected, Portico requires input of IRA deposit codes on transactions. If not selected, the IRA deposit code will default to C (Current Year). System default.
(Portico Host: 904 Transaction - REQ CODES field)
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| IRAdirect express |
If selected, the credit union uses IRAdirect express to process new IRAs and HSAs, withdrawals, and contributions.
(Portico Host: 908 Transaction - IRA DIRECT field)
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| Misc Description 1 |
The customized description displayed on the IRAs tab.
Length: 9 alphabetic
(Portico Host: 904 Transaction - MISC1 DESC field)
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| Misc Description 2 |
The customized description displayed on the IRAs tab.
Length: 9 alphabetic
(Portico Host: 904 Transaction - MISC2 DESC field)
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| Calculate Federal |
If selected, Portico should automatically calculate IRA federal withholding on IRA distributions. The with holding amount is a percentage of the withdrawal amount. The default percentage is 10%. You can specify a percentage greater than 10% or a flat amount on the IRA Profile dialog box. To automatically calculate federal withholding, this check box must be selected, and the Federal Withholding check box must be selected on the IRA Profile dialog box.
(Portico Host: 904 Transaction - CALC FEDWH field)
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| Calculate State |
The percentage used to automatically calculate the state withholding on IRA distributions. The default is 00.00 (0%), which indicates no automatic calculation.
Length: 5 numeric including decimal
(Portico Host: 904 Transaction - CALC ST WH field)
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| Federal GL Account |
The general ledger account number that will be credited for the IRA federal withholding amount.
Length: 6 numeric
Keyword: GL
(Portico Host: 904 Transaction - FED WH GL field)
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| State GL Account |
The general ledger account number that will be credited for the IRA state withholding amount. This is a branch-level field.
Length: 6 numeric
Keyword: GL
(Portico Host: 904 Transaction - ST WH GL field)
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To generate separate IRA statements, select the Produce Separate IRA Statements check box in the Statement Options section on the Credit Union Profile – Member tab.
