Whether you are planning your golden years or saving for your first home, an IRA from Las Colinas Federal Credit Union is the smart way to save for your future. We offer Traditional, ROTH and Coverdell Education Saving Accounts (formally Education IRAs).
No minimum deposit required to open an IRA Savings account
No setup or annual fees
Dividends paid monthly
Insured for up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), part of the National Credit Union Administration (NCUA), a federal agency
IRA Comparison Chart
Coverdell Education Saving Accounts
Which IRA is right for you
A Traditional IRA allows you to contribute income before itís taxed and enjoy tax-deferred earnings until retirement. This type of account may make sense if you anticipate paying taxes at a significantly lower rate in retirement.
A Roth IRA allows you to contribute income after taxes and enjoy tax-free earnings until retirement. Roth IRAís are more flexible because you do not have to take mandatory distributions at age 70Ĺ, and you can withdraw contributions at any time, tax-free and penalty-free after the account has been open 5 years.
A Coverdell Education Savings Account allows you to save for your childísí higher education. They were created to pay for your childís education expenses, such as tuition, fees, books, supplies, equipment, and, in some cases room and board, and computers. Unlike state 529 plans, Coverdell ESAs can be used to pay for qualified elementary and secondary education expenses.
Tax deductible contributions
Maybe. Deductible contributions are phased out as adjusted gross income increases.
Earnings grow tax deferred
Tax free withdrawals
Withdrawals of pre-tax contributions and any earnings are taxable when distributed
Contributions are always withdrawn tax free
After the account has been open 5 years, earnings can be withdrawn tax-free and penalty free for any of these reasons: age 59Ĺ, qualified first time home purchase, disability or death.
No taxes are due on withdrawals used for qualified higher-education expenses.
Maximum annual contribution amount
$5500 for individuals under age 50; $6500 for individuals age 50 or older; or Contributions cannot exceed compensation
$5500 for individuals under age 50 $6500 for individuals age 50 or older Contributions cannot exceed compensation
$2,000 to each child.
Required minimum distribution rules
To avoid tax consequences, you must use the funds before the child reaches 30 (age limit does not apply to special needs beneficiary).
Contributions after age 70.5
Yes, while you receive earned income
* Subject to IRS provisions. Please consult your tax advisor
Retirement plans are unique to each personís financial situation. With changing tax laws, it is important to consult with your tax or legal advisor regarding your personal situation. LCFCU does not provide tax or legal advice.