CURRENT INTEREST SECOND QUARTER 2017
y l i m a f We have a SWEET DEAL FOR YOU!
AUTO LOANS 1.75% APR*
AS LOW AS
+ 90 DAYS, NO PAY! Plus, $400 cash or a grill
*APR = Annual percentage rate. $400 cash or grill for auto loans over $20,000. All loans and rates are subject to credit approval and product participation. All rates are subject to change. See credit union for details and member eligibility.
Federally Insured by NCUA
Business Structures …………… 2
Schlitterbahn …………………… 6
Making a Difference …………… 10
Reviewing Your Account ……… 3
Scholarship Recipients ………… 7
Skip-a-Payment …………………… 11
Website: New Look ………………… 4
Disaster Preparedness ……… 8
Bank Jugging ……………………… 5
IRA RollOver Rule ……………… 9
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CHOOSING A BUSINESS STRUCTURE Before starting any business, one of the first questions you will need to ask yourself is, “What is the best business structure for me?” You may operate your business under any one of several business structures. Each type of business structure has certain advantages and disadvantages that should be considered. Previously, we have looked at the Sole Proprietorship, Partnerships (General and Limited) and C Corporation, S Corporation, Limited Liability Company and Limited Liability Partnership. Today, we will take a look at the Nonprofit Corporation business structure. A nonprofit corporation is formed to pursue a matter of public concern for non-commercial purposes. Nonprofits are authorized by different statutes than standard for-profit corporations, but the process is similar. Nonprofit organizers must file nonprofit Articles of Incorporation or a Certificate of Incorporation with the appropriate state agency and pay a filing fee. To pursue tax-exempt status, nonprofits must apply at the federal and state (if applicable) level; it is not automatically granted when the nonprofit is incorporated. For federal tax-exempt status, a nonprofit must file Form 1023 with the IRS. For state requirements, it is best to contact the department responsible for taxation in your state of incorporation to determine whether a separate state-level taxexemption filing is required. Like standard for-profit corporations, nonprofits provide limited liability protection. Personal assets of directors and officers typically cannot be used to satisfy the nonprofit’s debts and liabilities. The most common type of nonprofit is the 501(c)(3), formed in compliance with Section 501(c)(3) of the Internal Revenue Code. These nonprofits are organized and operate for religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports or prevention of cruelty to animals or children. Nonprofits may also be formed for other purposes. For example, business leagues, chambers of commerce, and real estate boards are formed under Section 501 (c)(6), and a cooperative hospital service organization is formed under Section 501(e). Advantages: Nonprofits can apply for both federal and state tax-exempt status. Some are eligible for public and private grants, making the obtainment of operating capital easier. With 501(c)(3) nonprofits, donations made by individuals to the nonprofit are tax-deductible. The nonprofit affords limited liability protection to directors and officers. Disadvantages: Nonprofits incur formation expenses and face ongoing state filing requirements and fees. Nonprofits face ongoing formalities, such as holding and properly documenting regular meetings of directors. More information on selecting a business structure can be found on the Secretary of State website at www.sos.state.tx.us under the business filings tab or on the SBA website at www.sba.gov under the Starting and Managing tab. Gulf Credit Union is here to help you with your Business Banking needs. Please contact Todd Gaudin, VP of Commercial Lending, at 409.984.7436, or Tracy Chesser, Commercial Loan Specialist, at 409.984.7477, to learn more about how GCU can help you!
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Just get them a card. (A gift card that is.) Ask about gift cards for any celebration.
Stop by any Gulf Credit Union location today!
HAVE YOU REVIEWED YOUR ACCOUNT LATELY? It is a good idea to review your account. Over time, life situations change and account ownership gets overlooked. Read over each ownership description and make sure you pick what is right for you. We highly encourage you to visit one of our offices and take time to review and update your account card. Please know as with any Payable on Death designation, it is imperative that we have the designated beneficiaries’ name, social security number and date of birth. This allows us to properly identify them when paying the funds. SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON DEATH) DESIGNATION The party to the account owns the account. On the death of the party, ownership of the account passes as a part of the party's estate under the party's will or by intestacy. SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON DEATH) DESIGNATION The party to the account owns the account. On the death of the party, ownership of the account passes to the P.O.D. beneficiaries of the account. The account is not a part of the party's estate. MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP The parties to the account own the account in proportion to the parties' net contributions to the account. The financial institution may pay any sum in the account to a party at any time. On the death of a party, the party's ownership of the account passes as a part of the party's estate under the party's will or by intestacy. MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP The parties to the account own the account in proportion to the parties' net contributions to the account. The financial institution may pay any sum in the account to a party at any time. On the death of a party, the party's ownership of the account passes to the surviving parties. MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP AND "P.O.D." (PAYABLE ON DEATH) DESIGNATION The parties to the account own the account in proportion to the parties' net contributions to the account. The financial institution may pay any sum in the account to a party at any time. On the death of the last surviving party, the ownership of the account passes to the P.O.D. beneficiaries.
INSTANT ISSUE DEBIT CARDS Now Available at our Mid County Branch Stop by our Mid County branch and ask about our Instant Issue Debit Cards. We’re located at 2779 Aero Drive, at the end of Nederland Avenue, near the airport. 3 WWW.GECU.ORG
CHECK OUT OUR NEW LOOK!
We’ve given our website a big spring makeover! While the address is still the same (www.gecu.org), we’ve made it even easier to find the things you need, such as quick links to mortgage rate information, details about our debit card rewards and financial calculators. Check it out at www.gecu.org.
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WATCH OUT FOR “BANK JUGGING” “Bank jugging” is the term used to describe suspects who sit in financial institutions parking lots and watch people go in and out. The suspects follow the people they believe are in possession of cash and look for an opportunity to burglarize their vehicles or rob them directly. Here are tips to help avoid becoming a target or victim: • Change your schedule. Example, don’t always make your deposit or withdrawal every Monday at 11:00 a.m. and then go to the gym, leaving your money in the car. • Don’t leave cash or checks in your vehicle. • Don’t sit in the lobby or parking lot counting your cash before or after your transaction. • Be aware of your surroundings at all times. • Watch for vehicles you see in the parking lot that follow you when you leave. • Notify credit union employees if you suspect anything suspicious. As with any crime, if you become a victim, notify law enforcement immediately.
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SCHOLARSHIP RECIPIENTS! Congratulations to these Recipients of our 2017 Gulf Credit Union scholarships! Each of these scholars was awarded a $1,000 scholarship. To be eligible, students must have a grade point average of C or above, be 19 years of age or younger, and a member of Gulf Credit Union. We wish you all the best!
Monsignor Kelly Catholic HS
Hamshire Fannett HS
Taylor Terrell,
Rose Alincastre,
Pressley Huebel,
Madison Bourque,
Jocelyn Nguyen,
Joanna Darbonne,
Jaden Lewis,
Grace Granger,
Cierra Singleton,
Ximena Barrutia,
Nederland HS
Legacy Christian Academy
Monsignor Kelly Catholic HS
LCM HS
Bridge City HS
Community Christian School
Port Neches Groves HS
Vidor HS
DO YOU HAVE QUESTIONS? WE HAVE ANSWERS! Check out Gulf Credit Union’s instant answer search box on our new website. Gulf Credit Union is always looking for ways to improve the experience of our members. We are excited to introduce to you our new and improved website! This includes our new intelligent search engine that is there to benefit our members, 24-hours-a-day, 7 days a week. Do you have a question? Look at the top right corner of our site and you will be able to locate the new search bar with “Instant Answers”. We encourage you to simply ask what’s on your mind! We can help with support-related questions, such as: • What do I do if I forgot my online banking password? • What do I do if I lost my ATM/Debit/Credit Card? • Where are your locations? • What are your hours? Perhaps you want to learn more about our auto and mortgage loans, or you have questions about our credit and debit cards. Just ask away, anytime! If, for any reason, you don’t find what you are looking for, you can “ask a member service representative”, who is prepared to get you the answer you need.
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PREPARE NOW IN CASE OF A DISASTER OR EVACUATION
We know the event of a disaster or an evacuation can be very stressful. While we realize many of you may have a physical preparedness plan (items such as food, batteries, clothes, etc.), it is also very important to have a financial plan. In order to help alleviate as much stress as possible for you, Gulf Credit Union has strategically put together a Disaster Plan. The main purpose of this plan is to ensure that you receive minimal disruptions in the event of a disaster or an evacuation, as well as to allow us to return to normal operations in an efficient and timely manner.
We offer many products and services that can assist you while being away from home. Some of these include: • Shared Branching
• Online Bill Pay
• GCU Android and Smart
• CAT Network
Phone App
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• Credit Cards
• Online Banking
• Debit Cards
• Direct Deposit
• Mobile Deposit
It is very important to have a plan for you and your family during the event of a disaster or an evacuation. During an evacuation, have a point of destination communicated amongst your group, in case you and your family become separated along the evacuation route. It is also important to notate helpful locations along the route, such as Shared Branching Locations, surcharge free ATMs, gas stations and hotels. Please visit our website (gecu.org) to become familiar with our surcharge free ATM and Shared Branching Network locations. The ideal rule of thumb is to save enough money to cover your bills for three to six months. We know this may not always be possible; that is why it is important to have a credit card. A credit card will not only assist you in renting things such as hotel rooms, it can also help you to make purchases while you are away from home. In the event of a disaster or an evacuation, it is also important that you carry cash. During below freezing weather, the keypad on an ATM may freeze. During the event of a hurricane or other natural disaster, the machine may run out of money or it may not have electricity due to power failure. However, when you carry cash, please be sure you keep it somewhere secure. In the event of a mandatory evacuation or disaster, all GCU locations will close immediately. Once we have been declared an emergency, we will operate from our Disaster Recovery Center (DRC). Also during this time, we will do our best to keep you informed by posting up-to-date information, as it becomes available, on our website (gecu.org) and on our Facebook page. This information will include closings and re-openings of GCU. Visit our website for additional advice on disaster and evacuation preparedness, as well as for suggestions as to what to bring with you, such as: important documents, water, medicine, etc. When you visit our website and click on the “Disaster Awareness Plan” section, you can print a free Hurricane Tracking Chart. Our website also lists other valuable tools, as well as suggestions for your disaster plan supply checklist.
Username: Gulf • Password: Gulf2017
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JOHN PAT WHITE II, CRPC Vice President, Wealth Management Gulf Investment Group
THE 60-DAY IRA ROLLOVER RULE
john.white@cunamutual.com 409.984.7452
WILL IT APPLY TO YOUR RETIREMENT SAVINGS DISTRIBUTION? If you receive a distribution from your IRA or workplace retirement plan, what will you do with it? You will probably want to arrange an IRA rollover; a common and useful financial move designed to take these invested assets from one retirement account to another, without tax consequences. The IRS may give you just 60 days to do it, however. The clock starts ticking on the day you receive the distribution. If assets from your employee retirement plan account or your IRA are paid directly to you, you have 60 calendar days to transfer those funds into an IRA or workplace retirement plan. If you fail to do that, the IRS will characterize the entire distribution as taxable income. (It may also tack on a 10% early withdrawal penalty if you take possession of such funds before age 591/2.)1 Your goal is to make this indirect rollover by the deadline. It is called an indirect rollover because its mechanics can be a bit involved. If the assets are coming out of an employee retirement plan, your employer may withhold 20% of them in accordance with tax laws. Unfortunately, you do not have the option of depositing only 80% of the distribution into an IRA or another employee retirement plan; you must deposit 100% of it by the deadline. You have to come up with the remaining 20% from your own savings. The withheld 20% should be returned to you at tax time if the rollover completes smoothly.2 Can you make multiple IRA rollovers using funds from a single IRA? You can, but the IRS says the rollovers must occur at least 12 months apart. Additionally, the IRS prohibits you from making a rollover out of the “new” IRA that receives the transferred assets for a year following that transfer.1
This 12-month limit does not apply to every kind of retirement plan rollover. Trustee-to-trustee transfers, where the investment company (acting as custodian of your IRA or retirement plan account) simply sends a check for the assets to the brokerage firm that will eventually receive them, are exempt from the 60-day deadline. So are rollovers between workplace retirement plans, IRA-to-plan rollovers, and plan-to-IRA rollovers. If you are converting a traditional IRA to a Roth IRA, the 60-day rule is also irrelevant. 1,2 Some retirement savers simply opt for a trustee-to-trustee transfer – a direct rollover -- rather than an indirect one. A direct rollover of retirement assets is routine, and it can be coordinated with the help of a financial professional. If you do prefer to perform an indirect rollover on your own, be mindful of the 60-day rule and the potential ramifications of missing the deadline. John Pat White, II may be reached at 409.984.7452 or john.white@cunmutual.com. This material was prepared by MarketingPro, Inc. and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note: investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. Citations. 1 – irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-andira-distributions [2/8/17] 2 – fool.com/retirement/2017/03/08/what-to-do-with-your-old-401k-when-switching-jobs. aspx [3/8/17]
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WE’RE MAKING A DIFFERENCE The GCU Helping Hands volunteers are off to a busy start in 2017! The group participated in the Officer Bryan Hebert Memorial Foundation Fundraiser Concert, helped distribute school supplies to area teachers with the Southeast Texas Food Bank- School Tools, and volunteered at the Humane Society of Southeast Texas. You may have also seen them at the Nederland Heritage Festival in the Chamber of Commerce booth, or at
the Nederland Family Fishing Day with the local Rotary Club. In addition to outside events, the volunteers have also hosted a toiletry drive to benefit Community Care Prayer Outreach. This effort helps local residents have access to necessities they may not otherwise provide. Thanks to our GCU Helping Hands volunteers, we’re making a difference!
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RELAX. HAVE FUN.
Take a small break from your loan, thanks to our Summer Skip-a-Payment program. It’s only $30 per loan! Your completed form must be received by June 20, 2017, for July deferrals and July 20, 2017, for August deferrals. Stop by any GCU location for additional details and requirements. Skip-a-Payments are subject to credit approval. Loans excluded from this offer: all collateral loans, all real estate loans, MasterCard®/Visa®, Small Business Loans/Commercial Loans, Overdraft Protection Loans, and Good2Go Quick Loans.
When you’re ready to dream big, Gulf Credit Union can help make it a reality. Personal loans are available starting as low as 6.75% APR*. Call us today before this offer drifts away. *APR = Annual Percentage Rate. All loans and rates are subject to credit approval and product participation. All rates are subject to change. See Gulf Credit Union for details.
Insured by NCUA
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GULF CREDIT UNION
P.O. BOX 848 GROVES, TX 77619
GULF CREDIT UNION IS FEDERALLY INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act. *APR = Annual Percentage Rate. All loans and rates are subject to credit approval. Rates are subject to change without notice.
Hours of Operation LOBBY - Monday - Thursday: 8:30 a.m. - 5 p.m. • Friday: 8:30 a.m. - 5:30 p.m. DRIVE-THRU - Monday - Wednesday: 7 a.m. - 6 p.m. • Thursday - Friday: 7 a.m. - 7 p.m. • Saturday: 9 a.m. - 12 p.m.
VISION STATEMENT
MISSION STATEMENT
Gulf Credit Union’s vision is to “create a relationship” with members. Our vision is met by matching our member’s need with the right product.
From generation to generation, Gulf Credit Union is your partner in fulfilling your financial dreams.
GROVES
BRIDGE CITY
BEAUMONT
MID COUNTY
5140 West Parkway • 409.963.1191
4721 Hwy. 87 South • 409.735.5156
2360 Dowlen Road • 409.860.3600
2779 Aero Drive • 409.729.8280
TOLL FREE 800.448.5328
GULF CREDIT UNION BOARD OF DIRECTORS: TERM ENDS
Libby Arnold, Chairwoman 2018 Carl Duplantis, Vice Chairman 2018 Camille Jones, Secretary 2019 Robert Adams, Treasurer 2019 Karen Brown 2020 Barry Gorman 2020
Tuesday, July 4
LABOR DAY
Monday, September 4
THANKSGIVING
Johnny Lewallen 2019
Thursday, November 23 Friday, November 24 Saturday, November 25
ADVISORY BOARD MEMBER:
CHRISTMAS
Harold Guilbeau 2018 12
20 1 7 HOLIDAYS
INDEPENDENCE DAY
Friday, December 22 Saturday, December 23 Monday, December 25