Traditional and Roth Individual Retirement Accounts
Louviers FCU offers both Traditional and Roth Individual Retirement Accounts (IRAs). You may choose to allocate funds within your IRA to an IRA Share Certificate, earning a specific rate for a specific term. IRA funds not invested in an IRA Share Certificate will remain in an IRA Accumulation Account, earning a variable rate. The minimum deposit to start an IRA is $500.00. IRA Accumulation Account dividends are compounded monthly.
To open an IRA, please visit one of our branches. You may also initiate the process by calling us or completing our online enrollment form.
Traditional IRA
A traditional IRA offers tax-deferred earnings and the possibility of tax-deductible contributions. These tax advantages make the traditional IRA a powerful tool for creating a balanced, long-term savings plan. You can contribute to a traditional IRA if you earn compensation and will not reach age 70½ by the end of the year. Earnings in a traditional IRA are not taxed until they are withdrawn. The ability to defer taxes on the earnings, and to withdraw in a year when you may be in a lower tax bracket, can mean more after-tax dollars for your retirement.
Roth IRA
A Roth IRA offers generous incentives to boost your retirement savings. Unlike traditional IRAs, contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free if you qualify for this advantage. You are eligible to contribute to a Roth IRA if you earn compensation and your income is less than the limit set by Congress. If your income is too high, you may be able to make a smaller contribution. Please check with your tax professional for current figures.
For more information on IRAs, including annual contribution limits and withdrawal procedures, please reference the Internal Revenue Service.
ADDITIONAL RESOURCES
*All deposits are insured up to $250,000.00 by the National Credit Union Administration. Rates and information are subject to change at any time.