 The credit union has a variety of accounts available to help you with your retirement planning. We have Regular, Roth, and Educational IRA's available. Each are available either as a savings account or as a share certificate.
Regular IRA
Many people choose a traditional IRA because of the tax break feature. Contributions to this account are tax dedctible. Also, traditional IRAs are best if you're planning to roll over money from other qualified retirement accounts, such as a 401k.
Roth IRA
Roth IRAs are a relatively new tool to help you plan for retirement. Your contributions are not tax-deductible, instead earnings grow tax-free. You pay no taxes when you withdraw the money provided it has been in the account at least 5 years AND you're older than 59 1/2. You can also withdraw the money tax free should you become disabled. Or, you can use the money if you are buying your first home, but there's a $10,000 lifetime withdrawal limit.
With a Roth, you don't have to begin withdrawing money at age 70 1/2, as is the case with the traditional IRAs. You can leave your earnings in your financial institution to continue to grow tax-free for as long as you like.
Education IRA
Need to save for your child's education? An Education IRA may be the investment you need to get them started in college. You can contribute up to $500 per year until the age of 18 or any year that a contribution is made to a state tuition program for the IRA beneficiary. Then you can make a tax free withdrawal for higher-education expenses, but the earnings are subject to taxation.
As always, your money is federally insured. For more details and full disclosure, please contact a credit union member service representative.
If you would like more information about LCU's IRA's stop by, email us or call us at 423-581-8345, ext. 111 today! |
