IRA accounts have recently
gained popularity due to some new and exciting changes
to the rules/requirements governing IRA accounts. LICFCU
offers all types of IRA plans including the traditional,
Roth and Educational IRA programs.
A traditional IRA program is an account that allows
you to defer taxes on your earnings until you withdraw
the funds. Based on your personal tax situation, you
may receive a tax deduction for this type of deposit.
You must start withdrawing funds once you reach 70.
This NEW IRA program is gaining popularity because the
account allows all earnings to grow tax-free in this
account and there is no age that you must start distributions
from this account. This IRA is not tax-deductible, however,
it does offer some true advantages over a Traditional
IRA program. One of the benefits for some is the provision
for "qualified distributions". A qualified
distribution from a Roth IRA means the account must
have been opened for at least 5 years and you are either
older than 59 1/2; disabled, or a first time home buyer
($10,000 lifetime withdrawal limit). Another benefit
of the new Roth IRA is that there is no required distribution,
so if you don''t need the funds you do not need to take
any withdrawals from the program.
This IRA account allows you to save for upcoming educational
expenses for your children. The maximum that can be
deposited into an Educational IRA per child from all
sources is $500 annually. The contribution is not tax-deductible.
Instead, earnings grow tax-free and you pay no taxes
or penalties on the money withdrawn to pay for qualified
higher education expenses, such as tuition, and fees,
before the child reaches age 30.
Because these accounts have many different features
and the deposits are based on your personal tax situation,
please consult your accountant or tax adviser before
making any decisions.
- Dividends are compounded & credited quarterly
with a dividend period of a calendar quarter.
- Balance Method - Average Daily Balance.
- Minimum opening deposit is $10.
- Minimum balance to earn the stated APY is $ .01.
- Annual maintenance fee may apply see fee schedule.