Individual Retirement Accounts
Open an Individual Retirement Account (IRA) with Lifetime Federal Credit Union to help plan for your future. When you open an IRA with Lifetime FCU you can save more money and pay less in taxes. Also remember that you can move money from an existing 401(k) and/or pension plan to a Rollover IRA without incurring taxes and potential IRS early withdrawal penalties.
Lifetime FCU offers the following credit union IRA accounts, which are insured aggregately up to $250,000 by the NCUA. There are no minimum deposits, no set terms, and no fees.
Traditional IRA – Setting aside money in an IRA can be a great way to help supplement your other retirement savings. Traditional IRAs offer tax-deferred earnings and the possibility for tax-deductible contributions. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term saving plan.
- Earnings accumulate tax-deferred
- Contributions are tax-deductible (if you qualify)
- The amount you can contribute is increasing yearly
Rollover IRA – A Rollover IRA is an ideal solution to maintain your investment and avoid paying heavy taxes and penalties when you change jobs or retire and want to take a distribution from your former employer’s retirement plan. The direct rollover option allows you to keep 100% of your retirement savings working for you by avoiding IRS early withdrawal penalties and current taxes.
Roth IRA – This IRA offers more incentives to boost your retirement savings, as well as more ways to use your nest egg. Roth IRAs offer unique and exciting savings opportunities to help plan for the future.
- Contributions are allowed at any age
- Qualified distributions are tax-free
- Flexible withdrawal options are available
- Unlike Traditional IRAs, contributions are never tax deductible
Coverdell Education Savings Account (ESA) – A Coverdell ESA may be a great, tax-advantaged way to save for a child’s future.
- Can be used to pay for qualified primary, secondary and higher education expenses
- Earnings accumulate tax- and penalty-free as long as the assets are used to pay for qualified education expenses
- Grandparents, aunts, uncles and friends may contribute, in addition to the child’s parents
Consult your tax advisor about potential tax savings with individual retirement accounts. Retirement account insurance protection is separate and apart from insurance coverage on other credit union accounts. Traditional, Rollover and Roth IRAs are insured aggregately up to $250,000. For more information on share insurance, please visit www.ncua.gov.