Navyfed: No More IRA Add-Ons?

racecar | Dec 30, 2022 | 616 posts since 2014

Called NavyFed today, spoke to 2 different reps. Both looked to see if there was any announcement about their (typical in the past) Add-On period for IRA CDs from early Jan to mid-April, but nothing. Of course it could still happen, but in years past by this point the reps were saying "it'll be Jan 3rd" or "Jan 4th" or some such time early in Jan (never Jan 1, but usually just a few days in). Now, nothing. No announcement that it will happen, and I was told by both reps that unless something is announced, no Add-Ons will be allowed, as have been in the past.

Only their short-term CDs (2yrs or less, other than specials) are Add-Ons natively. None of the longer ones (3yrs+) are. That's not a good sign.

I know nothing is guaranteed, but honestly there's no reason for me to open up a 5yr IRA w/Navy at a so-so rate (w/their 365 EWP) when rates are higher (and better EWP) elsewhere, if one can't add onto it later. I may still open up one w/1K just as a placeholder, just in case for future years, but this is really disappointing. I think I'll be going elsewhere for my IRAs.

Any thoughts?

It's already the last business day of the year, and in the past, Navy has always known by now about adding on to IRA CDs for the next year...

3

Answers

SouthernGirl | Dec 30, 2022 | 210 posts since 2022

raceccar,
UPDATE!!! As per Sandy, IRA CSR, Navy FCU Announcement today 12/30/2022 at 1:35 p.m. est. In 2023, IRA add-on requests can be processed from 01/04/2023 and the tax filing date of 04/18/2023. IRA back office can process IRA add-on requests from 04/19/2023 through 04/30/2023. To clarify add-ons can be either new contributions or existing funds that are maturing during the add-on period.

7

racecar | Dec 30, 2022 | 616 posts since 2014

Alright! Thank you SouthernGirl! Maybe Navy saw my post and changed their mind, heh, :) because as of just 2 hours before your post there had been no announcement. Guess they waited until the very last second. Thanks for the update, very good to hear!

3

Choice | Dec 30, 2022 | 937 posts since 2020

What’s the difference between two periods for processing?

1

SouthernGirl | Dec 30, 2022 | 210 posts since 2022

Choice,
Hello sir. The announcement is an internal document for Navy FCU employees. I believe the second period of time listed is for employees to make any necessary corrections and/or changes, prior to reporting the IRA data file to the IRS.

1

MY2CENTSWORTH | Dec 30, 2022 | 436 posts since 2016

Seems to me that Navy FCU has been lagging for awhile now and sort of dragging its feet so to speak. No longer a leader but a follower that makes a half-_ _ _ _ _ attempt at playing catch-up to still remain only somewhat competitive. The fact that they allowed add-ons to existing IRA's during tax season was never really advertised as far as I know. I only found out about it by accident when I was still working and was going to open an additional IRA to make my annual deposit into and at the time that option was mentioned to me. They seem to be a solid Credit Union with good customer service and some unique certificate terms/requirements, but I've moved on from looking to them for anything other than an occasional special that happens to fit for me.

4

CDsuckers | Dec 31, 2022 | 70 posts since 2022

The good thing about Navy is that they have been extremely flexible (especially with IRA's).
I was able to fund a bonifide add-on by having them move 1K from an already existent IRA.
They'll waive the EWP on an IRA CD if you're getting a new one that has a longer term.
They even do some of this stuff for taxable CD's.
The problem is that their rates are even lower than Ally Banks.
That's pretty sad.
I'm hoping that we see some IRA deals during this tax season.
Right now, I just need a 3 year CD.
Their current rate for this is just passable at 4.20%.
The best direct CD out there for that term is 4.6%.
But, that's bettter than any of the non-callable broker's CD's out there.
Of which there a zilch at the current time.
Although I do like the placeholder account idea in case rates go south in the future.

3

111 | Dec 31, 2022 | 672 posts since 2019

I posted back on Dec. 12 that a Navy CSR had told me this policy would again be in force for 2023 -

https://www.depositaccounts.com/banks/navy-fcu.html#promo50322

“...while the other policy cited above - for IRA CDs only, the provision for allowing add-ons from January through April 15 - has been going on for several years. The CSR DID tell me that this IRA policy will again be in effect, starting Jan. 2023 through 4/15/23.”

Glad to know she was telling the truth, though I never really doubted it.

3

Choice | Dec 30, 2022 | 937 posts since 2020

RMDs provide the incentive to open out year traditional IRA CDs with minimum deposit (placeholder) …b/c they can be closed by drawing down the annual RMD yet be added to if navy continues past add-on that was noted. Win-win, except for youngsters too young to be in RMD stage of life! As noted by others, other types of IRAs may have different rules

2

racecar | Dec 30, 2022 | 616 posts since 2014

RMDs don't come into play if your IRA funds are Roths... (but EWPs sure do).

Well, Navy will certainly see less deposits. I'll keep the min shell/skeleton IRA there by doing a 5yr @ 1k only as a placeholder but that's it. Going to put the rest elsewhere w/better rates and better ewp. I have Roth IRAs elsewhere maturing over next couple years, but instead of consolidating them at Navy as I would've done, if Navy will no longer allow the Add-On they've allowed in the past, I guess I'll keep them scattered around wherever the best deals are.

2

Robb | Dec 30, 2022 | 322 posts since 2018

If rates don’t change I’ll be looking at better opportunities as well next year. When I called in I was told that I was eligible for a .9% bump up but that this only applied to an 18 month term on a regular share account but that it would not apply to an IRA. So that kind of tipped the balance for me given I can get that extra .9% or so if I were to move my IRA elsewhere. I also plan to keep a small IRA at Navy as a placeholder.

2

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