A Traditional IRA is a simple way to save for retirement that offers immediate tax advantages.
How a Traditional IRA works
A traditional IRA is an individual retirement account that offers upfront tax deductions. The contributions you make may be fully or partially deductible.
Contributions grow tax-deferred, which means you are not taxed on the gains until the funds are distributed. Withdrawals before 59 1/2 may be taxed as income and subjected to a 10% penalty, depending on the purpose of the distribution.
Getting started with an LGFCU IRA is easy
Getting started with an LGFCU Traditional IRA is easy. There is a $25 minimum opening deposit and you’ll be required to maintain this minimum balance. There is no charge to open or service the account. However, a $1 service fee is charged if the account balance falls below $25.
Although ongoing contributions are not required, any that you make will appear on your monthly statement. If you choose to make contributions, the Credit Union makes it easy for you using recurring Funds Transfer.
Dividends are compounded daily and paid monthly. Rates and annual percentage yields (APY) are subject to change daily. Funds may not be borrowed or used as security for a loan. Traditional IRA account transactions, including transfers and withdrawals, are limited to a total of six each month per federal regulations.