Deposit Guidelines

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The following are Portico guidelines for IRA deposits.

  • IRA deposits will always default to a current year contribution in back office processing.
  • Contributions may be made into an IRA account via payroll processing, Transfer File, dividend, ACH and batch processing.
  • Contribution amounts cannot be changed to a negative amount.
  • Dividend maintenance should be completed using either the Adjustments – Dividend Adjustment tab for shares or using the Adjustments – Certificate Deposit from General Ledger tab and Adjustments – Certificate Withdrawal to General Ledger tab for certificates.
  • Refer to the latest Year-End Bulletin and Information on www.porticousers.com for IRA contribution limits. Contributions will not be allowed once the maximum amount has been reached in Transfer File, Payroll, Dividend, ACH, and Batch Processing.

Self-Certified Late Rollovers

It is the credit union's responsibility to ensure the member has completed the required Self Certification Form Revenue Procedure 2016-47 found on the IRS.gov website. Before accepting a late rollover contribution, the IRA owner must specify the reason(s) he/she was not able to complete the rollover within the required 60 days of receipt of the initial distribution. Select deposit code L from the IRS Dep Code drop-down list on the Transactions - Single Deposit, Withdrawal, Payment or Loan Advance tab to report late rollovers.

Postponed Contributions

Traditional and Roth IRA owners have a deadline of April 15 for making regular contributions each year, unless otherwise specified due to the 15th falling on a weekend or holiday. Select deposit code E from the IRS Dep Code drop-down list on the Transactions - Single Deposit, Withdrawal, Payment or Loan Advance tab to report postponed contributions.

There are two types of postponed contributions:

  • IRA owners in a federally declared disaster area.
  • IRA owners serving in the Armed Forces in a designated combat zone or qualified hazardous duty area.

For a list of federally declared disaster areas, go to the irs.gov website and enter the keyword disaster in the search field. Then, click on Tax Relief in Disaster Situations. You will find:

  • A list of the disaster relief areas
  • Any special reporting instructions related to that area. Not all disaster areas grant additional time to make IRA contributions. Read the associated news releases.
  • A link to the Federal Emergency Management Agency (FEMA) list of disaster areas.

Postponed Contributions due to active military obligations, have an additional period equal to the period of time the participant was in the designated zone or hazardous duty area; plus at least 180 days. For qualifying Armed Forces members, use the appropriate code for the owner’s area of operations.

The Postponed group box on the Transactions - Single Deposit, Withdrawal, Payment or Loan Advance tab allows you to select the reason for the postponed contribution. For IRA owners who were affected by a federally declared disaster area, the postponed code is FD. For qualifying Armed Forces members, use the appropriate code for the owners’ area of operations. The valid options are:

EO12744 - Arabian Peninsula
EO13119 – Federal Republic of Yugoslavia
EO13239 - Afghanistan
FD - Federal Designated Disaster Extension Contribution

The original year of the postponed contribution must also be entered for each of the postponed contribution types. This cannot be the current year and can only be up to two years in the past. For example, if the current year is 2018, you can enter 2017 or 2016.

Repayment Contributions

IRA owners designated as qualified reservists may borrow against their IRA without penalty if called to active duty for a period of at least 180 days. The qualified reservist may re-contribute the amount they took during a two year period that begins on the day immediately after the end of that individual’s active duty period. These repayments do not affect the contributions normally made during the year, and they are not subject to the contribution limits. Select deposit code Q from the IRS Dep Code drop-down list on the Transactions - Single Deposit, Withdrawal, Payment or Loan Advance tab to report these types of contributions making them exempt of penalties and limits. It is up to the credit union to monitor the date of distribution and date of re-contribution.

IRA Owners that live or work in a ‘federal disaster’ area related to either Harvey or Irma may request a 401(K) hardship distribution or loan. The Disaster Tax Relief and Airport and Airway Extension Act of 2017 waives the 10% tax on certain early distribution and allows participants to repay their distribution during a three-year period after receiving the distribution. You are allowed to repay your loan with a Federal Disaster Repayment and are not subject to the contribution limits for the year. Select deposit code F from the IRS Dep Code drop-down list on the Transactions - Single Deposit, Withdrawal, Payment or Loan Advance tab to report these types of repayment contributions making them exempt of contribution limits only at this time. It is the employer’s responsibility to monitor the amount of distribution, and it is the credit union’s responsibility to manage the repayment period.

IRA owners may borrow against their IRA without penalty to pay for expenses relating to the adoption or birth of a child. To withdraw funds from an IRA for an adoption or birth, use early distribution code 1. When repaying these funds to the IRA, use contribution code B - Birth/Adoption Repayment.