Traditional and Roth IRAs are available at the credit union.

Traditional IRA’s offers tax-deferred earnings and the possibility of tax-deductible contributions.

Roth IRAs are funded by non-deductible contributions but gives owners the opportunity for tax-free withdrawals.  You may invest in the form of a share or certificate plan.

APR = Annual Percentage Rate
APY = Annual Percentage Yield
 

Account	Rate Type	APR	APY
Share IRA	Variable	0.50%	0.50%
Share Roth	Variable	0.50%	0.50%
24 Month IRA CD	Fixed	1.30%	1.31%
36 Month IRA CD	Fixed	1.80%	1.81%
60 Month Roth CD	Fixed	2.50%	2.52%

IRA's at a Glance:

Share IRA/Roth - Dividends are compounded and posted quarterly based on the average daily balance method. There is no minimum balance required to earn dividends. Dividends on Share Accounts are based on available earnings and cannot be guaranteed.

IRA/Roth Certificates - Dividends are compounded and posted quarterly based on the daily balance method. Penalties apply for early withdrawal. Rates are subject to change without notice. Certificate withdrawal penalties: Up to 1 year – 90 days interest, Over one year – 180 days interest.

Please consult your tax advisor.  Please click on any of the brochures below for additional information. 

 
 

General Q & A What is an IRA? IRA stands for Individual Retirement Account. An IRA is one type of specific retirement account, allowed by the IRS, to provide either tax-advantage or tax deferral benefits. What types of IRAs does the Credit Union offer? The Credit Union offers Regular (Traditional) IRAs, Roth IRAs. What type of IRA Investments does the Credit Union offer? The Credit Union offers IRA Savings Accounts and IRA Certificates (24-60 month terms). How much can I contribute to a Traditional or Roth IRA year? Contribution limits are set by Congress, and these limits depend on the tax year and the owner's age.  There are two different limits each year:  (1) members who are 50 or older at the end of the year, (2) under those under 50.  The combined regular contributions to both traditional and Roth IRAs cannot exceed these limits.                 Year 2009 :  Under Age 50 - $5,000 and over age 50 - $6,000 Year 2010:   Under Age 50 - $5,000 and over age 50 - $6,000 The IRA Contribution Deductibility Phrase-Out Ranges for Traditional IRA Contributions. What is the difference between a Traditional and Roth IRA? Unlike Traditional IRAs, Roth IRAs are never tax deductible. Regular Contributions can be withdrawn tax and penalty free at any time with a Roth IRA (certain IRS requirements apply). If I already have a Roth IRA, can I have a Traditional IRA too? Yes, the limits on annual contributions apply to any combination of Traditional and Roth IRA contributions that you make for the year. Can you convert funds in a Traditional IRA to a Roth IRA? Yes, but you will be taxed on the amount that you convert from a Traditional IRA to a Roth IRA (certain IRS requirements apply).  See New Rules effective January 1, 2010. If I contribute to a Coverdell ESA, can I still contribute to a Traditional or Roth IRA? Contributions to Traditional or Roth IRAs do not effect the contributions you can make to a Coverdell ESA. Can I roll funds from a Traditional or Roth IRA into a Coverdell ESA? No, rollovers from a Traditional or Roth IRA into a Coverdell ESA are not allowed. What type of IRA will accept my Qualified Retirement Plan Funds? Qualified Retirement Plan Funds can only be deposited into a Traditional IRA Account. When will I receive a 1099-R Tax Form? The 1099-R Tax Form for all withdrawals from Traditional and Roth Plan Accounts are mailed at the end of January. When will I receive a 5498 Tax Form? The 5498 Tax Form for all contributions to Traditional, and Roth Accounts are mailed in May. If I completed a rollover from my other financial institution to LCU, will I receive a 1099-R/1099-Q Tax Form(s) from LCU? No. In this situation, the other financial institution will provide you with the 1099-R/1099-Q Tax Form(s). You may receive 1099-R/1099-Q Tax Form(s) for other withdrawals made from your IRA at the LCU.

Your savings is federally insured to at least $250,000 and backed by the full faith and credit of the United States Government, by the National Credit Union Administration, an agency of the U.S. Government.  Effective October 15, 2008, Traditional and Roth IRAs (Individual Retirement Accounts) are insured to $250,000 by the National Credit Union Administration, an agency of the U.S. Government.  We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

Additional information can be found in the NCUA Your Insured Funds brochure.