Navy Federal Credit Union 40 Month IRA CD 3.75%

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dollarsaver
Posts: 368
Joined: Thu Feb 07, 2013 1:17 pm

Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by dollarsaver »

Hi all,
Anyone have thoughts on the Navy Federal IRA CD 40 month for 3.75% up to 150k? We have maturing money from PenFed. We are members. Can't find anything comparable for brokered CD's or treasuries. Thanks in advance
Prudence
Posts: 596
Joined: Fri Mar 09, 2012 4:55 pm

Re: Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by Prudence »

dollarsaver wrote: Mon Jan 07, 2019 2:30 pm Hi all,
Anyone have thoughts on the Navy Federal IRA CD 40 month for 3.75% up to 150k? We have maturing money from PenFed. We are members. Can't find anything comparable for brokered CD's or treasuries. Thanks in advance
Rate is great but I probably won't bother due to $150K limit. Thanks for mentioning this.
k3vb0t
Posts: 470
Joined: Mon Jun 02, 2014 4:42 pm

Re: Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by k3vb0t »

Was taking a look at this to see if it is worth the hassle... looks like they also have a $100 first IRA bonus with a minimum of $100?

All looked good until I checked out this page: https://www.navyfederal.org/products-se ... s/iras.php

Their table that says If you're covered by a retirement plan at work, use this table to determine if your income affects the amount of your deduction. is way off... or am I missing something?

It's showing if you are married filing joint and make $193,000 or less then your full traditional IRA contribution is deductible. That's off by $90,000 per this IRS site: https://www.irs.gov/retirement-plans/20 ... an-at-work ... shouldn't it say $103,000 or less?

Edit: It should say if you ARE NOT covered by a retirement plan at work... the numbers are correct for that.

1. Am I completely wrong here?
2. If not, isn't it just a little bit concerning they are way off on this?
JoeJohnson
Posts: 459
Joined: Wed Jun 08, 2011 2:34 pm

Re: Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by JoeJohnson »

k3vb0t wrote: Mon Jan 07, 2019 7:19 pm Was taking a look at this to see if it is worth the hassle... looks like they also have a $100 first IRA bonus with a minimum of $100?

All looked good until I checked out this page: https://www.navyfederal.org/products-se ... s/iras.php

Their table that says If you're covered by a retirement plan at work, use this table to determine if your income affects the amount of your deduction. is way off... or am I missing something?

It's showing if you are married filing joint and make $193,000 or less then your full traditional IRA contribution is deductible. That's off by $90,000 per this IRS site: https://www.irs.gov/retirement-plans/20 ... an-at-work ... shouldn't it say $103,000 or less?

Edit: It should say if you ARE NOT covered by a retirement plan at work... the numbers are correct for that.

1. Am I completely wrong here?
2. If not, isn't it just a little bit concerning they are way off on this?
That site definitely has some errors/confusing. $193k is the start of the Roth phase out for MFJ couples. $193k is also the start of the phase out for Traditional IRA if taxpayer is not covered by retirement plan but spouse IS covered.

It does correctly list the deductible Traditional IRA single phase outs starting at $64k
k3vb0t
Posts: 470
Joined: Mon Jun 02, 2014 4:42 pm

Re: Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by k3vb0t »

JoeJohnson wrote: Mon Jan 07, 2019 7:25 pm
That site definitely has some errors. $193k is the start of the Roth phase out for MFJ couples

It does correctly list the deductible Traditional IRA single phase outs.
I wanted to check out the IRA Certificate Maturity Instructions as well... the link is for the same main page that lists everything. No instructions.

I'd be happy to drop some of my fixed income into a 3.75% CD and then move it to Vanguard when it matures, but if they can't get the basics like the traditional IRA deduction limits or linking to their own maturity instructions correct...
Topic Author
dollarsaver
Posts: 368
Joined: Thu Feb 07, 2013 1:17 pm

Re: Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by dollarsaver »

k3vb0t wrote: Mon Jan 07, 2019 7:31 pm
JoeJohnson wrote: Mon Jan 07, 2019 7:25 pm
That site definitely has some errors. $193k is the start of the Roth phase out for MFJ couples

It does correctly list the deductible Traditional IRA single phase outs.
I wanted to check out the IRA Certificate Maturity Instructions as well... the link is for the same main page that lists everything. No instructions.

I'd be happy to drop some of my fixed income into a 3.75% CD and then move it to Vanguard when it matures, but if they can't get the basics like the traditional IRA deduction limits or linking to their own maturity instructions correct...
Spoke to a rep today and he said to open an IRA Savings Acct with $0 and when the CD matures the instructions will be to put the money into this IRA Savings Acct and then have Vanguard pull it into my Rollover IRA. After it is opened you can add maturity instructions. I did open the IRA Savings Account today online and will Vanguard wire $150K into it tomorrow and open the CD.
Bfwolf
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Joined: Thu Oct 14, 2010 11:19 am

Re: Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by Bfwolf »

I have a 3% APR IRA CD at Andrews Federal Credit Union with something like 55 months remaining...current balance is somewhere in the $107K region. I am pretty sure it's a 6 month EWP for breaking it. Would you guys break it and move the money to this CD? I'm 42 so many years away from accessing this money, and it's just a part of my fixed income asset allocation.

EDIT: Should add that I am already a Navy Federal member, so at least don't have to jump through that hoop if I do this. I don't have an IRA with them though.
MisterBill
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Re: Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by MisterBill »

Bfwolf wrote: Tue Jan 08, 2019 12:11 am I have a 3% APR IRA CD at Andrews Federal Credit Union with something like 55 months remaining...current balance is somewhere in the $107K region. I am pretty sure it's a 6 month EWP for breaking it. Would you guys break it and move the money to this CD? I'm 42 so many years away from accessing this money, and it's just a part of my fixed income asset allocation.
Did you do the math to figure out how much interest you'd ve losing vs. how much extra you'd get for 40 months? That's your answer, although there's also the question of what rate you'd get for the 15 months at the end, and no one knows the answer to that.
Bfwolf
Posts: 2053
Joined: Thu Oct 14, 2010 11:19 am

Re: Navy Federal Credit Union 40 Month IRA CD 3.75%

Post by Bfwolf »

MisterBill wrote: Tue Jan 08, 2019 7:00 pm
Bfwolf wrote: Tue Jan 08, 2019 12:11 am I have a 3% APR IRA CD at Andrews Federal Credit Union with something like 55 months remaining...current balance is somewhere in the $107K region. I am pretty sure it's a 6 month EWP for breaking it. Would you guys break it and move the money to this CD? I'm 42 so many years away from accessing this money, and it's just a part of my fixed income asset allocation.
Did you do the math to figure out how much interest you'd ve losing vs. how much extra you'd get for 40 months? That's your answer, although there's also the question of what rate you'd get for the 15 months at the end, and no one knows the answer to that.
Yes, it's favorable by a couple thousand dollars assuming I can get 3.75% for the 15 months at the end.

But there's also the opportunity cost of foregoing a better rate that comes around. For instance, if 4% is coming in a couple months, then i'd probably be better off waiting for that. Trying to judge how special 3.75% is for an IRA CD in today's environment.
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