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IRAs

At L&N Federal Credit Union, we want to help you save the money you need for a comfortable future through investing in an Individual Retirement Account. An IRA is a tax-advantaged savings plan built around your individual needs.

It’s easy to start, affordable, and can make a world of difference in retirement living. L&N Federal Credit Union offers four types.





Traditional



The Traditional IRA has been a savvy way to invest money for your future due to its tax deferred status. If you have earned income, you may be eligible to contribute to a Traditional IRA. Learn how you can be a smart investor with L&N Federal Credit Union Traditional IRAs.

Benefits of a Traditional IRA:
  • Tax deductions – Based on individual eligibility, may be able to deduct part or all of your annual contribution on your income tax return. We recommend that you consult with your tax advisor for individual eligibility.
  • Tax deferral - Pay no federal taxes on earnings until you take withdrawals.
  • Spousal advantage - You can open an IRA for your non-working spouse if you file a joint tax return.
  • Penalty-free withdrawals – You are able to make penalty-free withdrawals for a first-time home purchase, education expenses, and birth/adoption expenses (up to $5,000)
  • Dividends are earned daily and posted quarterly (with the exception of the 6-month IRA certificates, where dividends are posted at maturity).
  • All IRA share certificates have a minimum balance of $1000.00 and are available in terms 6 months thru 5 years





Roth



The Roth IRA has some income restrictions (see your tax advisor for eligibility details). Roth IRA contributions are made with after-tax dollars.

Here's the upside of the Roth IRA:

  • Tax and penalty free withdrawals of earnings if the account is open for at least five years and one of the following reasons for withdrawal applies: age 59 ½ or older, disability, death, first-time home purchase, and birth/adoption expenses (up to $5,000).
  • No age limitations on contributions- it's never too early or too late to start saving because you can put money in as long as you earned income.
  • No required withdrawals at age 72
  • Dividends are earned daily and posted quarterly (with the exception of the 6-month IRA certificates, where dividends are posted at maturity).
  • All IRA share certificates have a minimum balance of $1000.00 and are available in terms 6 months thru 5 years.





Coverdell Education



The sole purpose of a Coverdell Education Savings Account is to help pay for a child’s higher education. All contributions are made with after tax dollars, and withdrawals are tax and penalty free for qualified expenses (e.g. tuition, fees, books, supplies, and certain room and board costs).

Dividends are earned daily and posted quarterly (with the exception of the 6-month IRA certificates, where dividends are posted at maturity).





IRA Certificates



  • An IRA Certificate can be opened with any of the terms offered on our traditional certificates
  • Ranges include 6 months, 18 months, 1,2,3,4,&5 years.
  • Tax deductions – Based on individual eligibility, may be able to deduct part or all of your annual contribution on your income tax return. We recommend that you consult with your tax advisor for individual eligibility.
  • Tax deferral – Pay no federal taxes on earnings until you take withdrawals.
  • Dividends are earned daily and posted quarterly (with the exception of the 6-month IRA certificates, where dividends are posted at maturity).