When you’re looking for a secure investment for retirement, LAPFCU’s NCUA-insured Individual Retirement Accounts (IRAs) 1 allow you to earn dividends at a non-variable rate. IRAs also may provide you with tax benefits (consult your tax advisor for detail).
Traditional vs Roth IRA
With a Traditional IRA, you pay the taxes when you withdraw the money during retirement. With a Roth IRA, it’s the exact opposite. You pay the taxes on the front end, but there are no taxes when you withdraw the money.
|ROTH IRA||TRADITIONAL IRA|
|Maximum contribution||$5,500 or 100% of employment compensation, whichever is less3|
|Catch-up contribution||Individuals age 50 or older (in the calendar year of their contribution) can contribute an additional $1,000 each year|
|Contribution deadline||April 15 (for carryback contributions from the previous year). No deadline for contributions made within the same year.|
|Taxation at withdrawal||Contributions are always withdrawn tax-free. Earnings are federally tax-free after the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, death, disability, qualified first-time home purchase.||Withdrawals of pre-tax contributions and any earnings are taxable when distributed.|
|Penalties at withdrawal||A non-qualified distribution is subject to taxation of earnings and a 10% additional tax unless an exception applies.||Withdrawals before 59½ may be subject to a 10% early withdrawal penalty unless an exception applies.|
|Required minimum distributions (RMDs)||Not subject to minimum required distributions during the lifetime of the original owner||RMDs starting at age 70½|
|Eligibility: Age||Any age above 18 with employment compensation4||Under age 70½ with employment compensation4|
|Minimum Deposit to open||$5||$5|
See how much you’ll need to save for retirement with our retirement calculator, then call 877-MY-LAPFCU (877-695-2732) for more information. You can also stop by any of our branches. Click here for branch locations.
Get an extra 0.25% APY2 ON NEW OR ROLLOVER IRA CERTIFICATE RATES with MEMBER BENEFITSSM!
1Consult your tax advisor as to which IRA would suit your specific situation. $5.00 (five dollars) minimum deposit to open. 2 APY = Annual Percentage Yield. 0.25% dividend rate bonus applied to new or rollover Share/IRA Certificates. Member must fulfill Member Benefits Program requirements in order to receive incentives. Program is subject to change or cancellation at any time without notice. Restrictions may apply. Ask for details. Member Benefits incentives may not be combined with any other offers. 3At least one spouse must have employment compensation to contribute to an IRA. 4You must be at least 18 years old to open an IRA with LAPFCU. 0713-48N