IRA and HSA Maintenance

New Employee Training Member Services Training Guide IRA and HSA Maintenance

This document provides technical guidance for users on managing Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) within the FLEX system. IRA and HSA Maintenance functionalities are crucial for defining contribution limits, storing fair market values, maintaining historical data, and modifying reporting codes as needed.

Accessing IRA/HSA Maintenance

  • Location: IRA/HSA Maintenance is found under the Shares section from the FLEX Main Menu.
  • FLEX Main Menu > Shares > IRA/HSA Maintenance

Navigating IRA/HSA Accounts

Upon initial access, the screen will be blank. To display account information:

  1. Enter an account number.
  2. Alternatively, use the search functions to locate the desired account.
  3. Select the appropriate suffix for maintenance.

IRA Year Summary

The IRA Year Summary provides a comprehensive overview of an IRA account’s annual data.

  • Accessing the Summary:
    1. Highlight the IRA suffix.
    2. Click Select.
  • Information Displayed:
    • Year
    • Annual Contribution Limit
    • EOY (End of Year) Fair Market Value
    • Next Year Required Minimum Distribution (RMD)
    • Table J, S, U (Joint, Single, or Uniform)
    • Beneficiary Birth Date (if applicable)

Functions within IRA Year Summary

  • Calculate Minimum Distributions:
    • Purpose: To calculate the Required Minimum Distribution (RMD). This calculation does not automatically save to the account.
    • Steps:
      1. Click Calc Min Distributions.
      2. Select the Calculation Method (e.g., Annually).
      3. Select the Table type (Single, Joint, or Uniform).
      4. Click Calculate to display the minimum distribution amount.
      5. To save the RMD to the account, select the relevant year and use the Edit function.
  • Add:
    • Purpose: To manually add a tax year. While the system automatically adds new year records during EOY processing, manual addition may be necessary for previous years (e.g., storing Fair Market Value for a year prior to the account’s opening on FLEX).
    • Steps: Click Add.
  • Edit:
    • Purpose: To modify an existing year’s data and contribution limits.
    • Steps: Highlight the year and click Edit.
  • RMD:
    • Purpose: To edit RMD Information for a specific year.
    • Steps: Highlight the year and click RMD.
    • Editable Fields: Next Year Minimum RMD, Table J, S, U, Beneficiary Birth Date, Transfer Type, Frequency, Amount, Distribution Code, Allow to Over Disburse, Federal Withholding Code/Rate, State Withholding Code/Rate, Total RMD Amount Disbursed.
  • History:
    • Purpose: To view a history of transactions performed for a specific tax year and maintain IRA reporting codes.
    • Steps:
      1. Highlight the year.
      2. Click History.
    • Information Displayed in Summary:
      • Code: IRA reporting code.
      • YTD Amount: Total amount of transactions for the year using the reporting code.
      • Count: Number of transactions performed this year using the reporting code.
    • Viewing Transaction Details:
      1. From the IRA History Summary, click Detail next to the desired reporting code.
      2. This will display every transaction performed for that code.
    • Editing Transactions (in case of error):
      1. In the IRA History Detail view, highlight the transaction.
      2. Click Edit to view and modify transaction details.

Automatic Transfers and Check Maintenance

Credit unions often set up automatic transfers or check disbursements for Required Minimum Distributions (RMDs). This functionality is managed under Transfers in the FLEX Main Menu.

  • Location:
    • FLEX Main Menu > Transfers > Auto Transfer / Check Maintenance
  • Panels:
    • Top Panel: Displays all automatic transfers associated with the selected account.
    • Bottom Panel: Displays all automatic check disbursement records for the selected account.
  • Adding a New Record: Click Add.

Automatic Transfers

  • Adding/Editing: Click Add to create a new transfer, or highlight an existing transfer and click Edit.
  • General Information Fields:
    • Transfer Amount: The amount to be transferred.
    • Allow Partial Transfers:
      • Yes: Transfer all available funds but do not advance the next transfer date.
      • No: Only transfer if the total amount due is available.
      • Available: Transfer all available funds and advance the next transfer date.
    • Partial Amount: Displays any partial amount already taken.
    • Sequence Number: Controls the posting order/priority if multiple transfers are defined for the same account/suffix.
  • Debit Account Specifications:
    • Account/Suffix: The account number and suffix from which funds will be transferred (e.g., the IRA suffix for RMDs).
    • Transfer Description: Optional field for a description (e.g., “RMD for IRA Share”).
    • IRA Distribution Code: Available when an IRA suffix is selected. Enter the distribution code for the transfer. The system will automatically mark this code in IRA History.
      • Examples: 1:[D]-Early distribution, no known exception; 7:[D]-Normal Distribution; 8:[D]-Excess contributions.
    • Override Available Funds:
      • No: Do not go below available funds.
      • Yes: Transfer all funds in the account, ignoring holds and pledges, but will not take the account negative.
      • Par Value: Allow transfer down to the minimum PAR value, ignoring holds and pledges.
    • Reg D Transfer: Check if the transfer is considered a Reg D transfer.
    • Overdraft Repayment Plan: Check if the transfer is part of a repayment plan for the Share Collection program (optional module).
  • Credit Account Specifications:
    • General Ledger Account: Check if funds are transferred to a general ledger account.
    • Account/Suffix: The account number and suffix to which funds will be transferred.
  • Posting Parameters:
    • Next Posting Date: The next scheduled transfer date.
    • Payment Frequency: Select the frequency of the RMD transfer.
    • Start Date: Date the record becomes active.
    • Stop Date: End date for a limited-time transfer. If blank, disbursement continues until deleted.
    • Posting Group: Used to group transfer records for simultaneous posting.
    • Posting History: Automatically updated by the system after transfer postings.

Automatic Check Disbursements

  • Adding/Editing: Similar to automatic transfers, click Add or Edit.
  • Debit Account Fields:
    • General Ledger Account: Not applicable for IRA RMDs.
    • Account/Suffix: The account number and suffix from which funds will be disbursed.
    • Sequence Number: Controls the posting order/priority if multiple check disbursement records are defined for the same account/suffix.
  • Check Details Fields:
    • Check Payee Account: Enter the member’s account if the check is payable to the member; Pay To fields will populate.
    • Description One/Two: Detailed descriptions for history files.
    • Amount: The dollar amount of the check.
    • Pay to the Order of: Click fields to manually key payee information if different from the Check Payee Account.
  • Codes Fields:
    • Payment Frequency: Select the frequency of the RMD check.
    • Allow Partial Check: Select whether partial checks are allowed (caution: may result in many low-dollar checks).
    • Reg D Transfer: Check if the disbursement is considered a Reg D transaction.
    • Override Available Funds: (Same options as Automatic Transfers).
    • IRA Distribution Code: Enter the distribution code for the check/disbursement. The system will automatically mark this code in IRA History.
  • Dates Fields:
    • Next Run Date: Next scheduled posting date.
    • Last Run Date: Last successful posting date (system updated).
    • Start Date: Date the record becomes active.
    • Stop Date: End date for a limited-time disbursement. If blank, continues until deleted.
  • Note: Refer to the full documentation on Auto Transfers/Check Maintenance for details on worksheets and posting.

HSA Year Summary

The HSA Year Summary provides an overview of an HSA account’s annual data.

  • Accessing the Summary:
    1. Highlight the HSA suffix.
    2. Click Select.
  • Information Displayed:
    • Year
    • Annual Contribution Limit
    • EOY Fair Market Value

Functions within HSA Year Summary

  • Add:
    • Purpose: To manually add a tax year. The system automatically adds new year records during EOY processing, but manual addition may be necessary for previous years. Also used to add fees for HSA accounts.
    • Steps: Click Add.
    • Fields in Add HSA Year: Coverage Option, Year, Maximum Contribution, Additional Contribution, Start Date, Fee Account, Stop Contribution Date, Fee Suffix, EOY Fair Market Value.
  • Edit:
    • Purpose: To modify previous year coverage options, contributions, Fair Market Value, additional contributions, and fees.
    • Steps: Highlight the year and click Edit.
  • History:
    • Purpose: To view a history of transactions performed for that tax year and maintain HSA reporting codes.
    • Steps:
      1. Highlight the year.
      2. Click History.
    • Information Displayed in Summary:
      • Code: HSA reporting code.
      • YTD Amount: Total amount of transactions for the year using the reporting code.
      • Count: Number of transactions performed this year using the reporting code.
    • Viewing Transaction Details:
      1. From the HSA History Summary, click Detail next to the desired reporting code.
      2. This will display every transaction performed for that code.
    • Editing Transactions (in case of error):
      1. In the HSA History Detail view, highlight the transaction.
      2. Click Edit to view and modify transaction details.

HSA Annual Fee Worksheet/Posting

This program is used to process and post annual fees for HSA accounts.

  • Location: Found under Shares in the FLEX Main Menu.
    • FLEX Main Menu > Shares > HSA Annual Fee Worksheet/Posting
  • Program Fields:
    • Posting Effective Date: Enter the effective date of the posting (can be a future date, but fee posts immediately).
    • Worksheet Or Posting (W or P):
      • W: Generates a worksheet only.
      • P: Posts the fee.
      • Recommendation: FLEX recommends generating a worksheet and verifying information prior to posting.
    • Include Share Types: Input specific share types to be charged. Leave blank to charge all HSA types.
    • Description For Transaction: Enter the description that will appear in history and on statements for the fee.
    • HSA Code: Enter the HSA reporting code to be used for fee posting.

Configuration

IRA Contribution Limit Configuration

  • Purpose: Allows users to configure IRA limits for the last year, current year, and next year.
  • Location:
    • System Administration > General Configuration > Configuration > Maintain IRA Tables > IRA Contribution Limit Configuration

Set HSA Maximum Contribution

  • Purpose: Allows users to set the HSA contribution for a specific year.
  • Location:
    • Shares > Reports > Set HSA Maximum Contribution

Reports

Various reports are available for IRA and/or HSA accounts, found under Share Reports from the FLEX Main Menu.

  • 69 and Over IRA Report:
    • Purpose: Generates a report of members with an IRA who are 69 years old or older.
    • Includes: Account number/suffix, group code, name, age, date of birth, IRA balance, dividends paid this year, Federal withholding, days before turning 70 (if 69), and if auto transfer/check disbursement is set up.
  • Address Change Accounts with IRA:
    • Purpose: Generates a list of IRA accounts that have had address changes.
    • Includes: Account number, member name, date change, and field change.
    • Note: If an address is changed and red flag verification is marked “Verified,” this is also considered a change, resulting in two line items.
  • Age 70 and Over Trial Balance:
    • Purpose: Generates a trial balance of accounts age seventy and over.
    • Includes: Account number, name, age, share balance, available, paid in by age 70, loan balance, last transaction date, due date, monthly payment, security code, purpose code, and payment method.
  • IRA Required Minimum Distributions Age 72:
    • Purpose: Lists all IRA accounts where the member will be age 72 or older by the end of the current year, including RMD if saved on the account.
    • Includes: Account/suffix, type group code, name, age, date of birth, date member has or will reach age 72, account balance, code used to calculate RMD (if applicable), and RMD amount (if saved).
  • IRA/HSA Transaction History:
    • Purpose: Allows users to generate a transaction listing for IRA or HSA accounts within a selected date range.
    • Includes: Account/suffix, member’s last name, account type and description, transaction date, transaction code and description, transaction amount, branch code, teller ID, IRA or HSA reporting code and description.
  • IRA/HSA Trial Balance:
    • Purpose: Allows users to generate an IRA Trial Balance, an HSA Trial Balance, or both.
    • Includes: Account number/suffix, type of account (share or certificate), name, current balance, available balance, last activity date, maximum contribution amount for this year, total contribution for this year and last year.
    • Note: IRA Trial Balance will also show total SEP contribution this year and last year.
  • Universal Pensions IRA:
    • Purpose: Generates three different reports for each IRA type (education, Roth, and regular) based on a quarter-end date.
    • Includes: Social security number, name, account number, current year beginning balance, contribution YTD, withdrawals YTD, dividends YTD, and ending balance.