The Roth IRA lets you earn retirement money tax-free on your investments.
A Roth IRA allows you to build a tax-free nest egg for your retirement. Because these funds are not tax-deductible at the time they are deposited, contributions may be withdrawn tax- and penalty-free at any time.
Later, if certain requirements are met, you will be able to take tax- and penalty-free distributions of earnings in retirement.
How a Roth IRA works
With an LGFCU Roth IRA, you only need a $25 minimum deposit to open your account and to maintain the required minimum balance. Ongoing contributions are not required. If you choose to make ongoing contributions, the Credit Union makes it easy to do so, using recurring Funds Transfer.
Dividends, which some financial institutions call interest, are compounded daily and paid monthly. There is no charge to open or service the account. However, a $1 service fee is charged if the account balance falls below $25 on the statement date.
Monthly statements are provided, and you can choose to contribute to your Roth IRA using our recurring Funds Transfer service.
Rates and annual percentage yields (APY) are subject to change daily. Funds may not be borrowed or used as security for a loan. A 6% non-deductible federal excise penalty may be imposed for excess contributions.