Individual Retirement Accounts (IRA)

Individual Retirement Accounts (IRAs) were created specifically to encourage people to save for retirement. It is a special savings plan authorized by the Federal government to help you accumulate funds for your retirement. Incentives include deferring taxes on earning until funds are withdrawn and, in some cases a tax deduction for contributions.

  • Every individual who has earned income or received alimony may contribute to an IRA. Income from other sources such as investments or inheritances does not qualify. Contributions may not be made for or after the year in which you reach age 70½.
  • IRAs are one the of the best savings tools available today. More people than ever before are now eligible to benefit from the tax advantages provided through IRA investments.
  • Your IRA is your first line of defense in building assets for a comfortable retirement. Because an IRA is so important to your future wellbeing, it is vital that you place your funds where they will give you one the best combinations of service, safety and earnings.
  • LRRCU offers three types of IRAs: Traditional, Roth and Coverdell Education Savings Accounts. All types may be invested in either a tiered IRA savings account or an IRA Certificate of Deposit.
  • Members age 59½+ (IRA distribution minimum age) are offered non-penalty IRA Certificate of Deposits. Age 59½ members needing to withdraw from their IRA CD may do so without early withdrawal penalties. Withdraws must be at least $500 each. Members 59 ½ may close out IRA CDs and invest in a better rate IRA CD without early withdrawal penalties.

Share & IRA Certificates of Deposit Rates

6 Months$500.000.20%0.20%0.30%0.30%
12 Months$500.000.20%0.20%0.30%0.30%
18 Months$500.000.25%0.25%0.35%0.35%
24 Months$500.000.35%0.35%0.45%0.45%
36 Months$500.000.45%0.45%0.55%0.55%
48 Months$500.000.65%0.65%0.75%0.75%
60 Months$500.000.95%0.95%1.05%1.05%

APR = Annual Percentage Rate / DTI = Debt to Income Ratio
*Rates & Terms are Determined by Credit Score & Subject to Change Without Notice

Traditional IRA Account in Pa

This IRA allows tax-deductible contributions. Anyone under age 70 who has earned income, or is filing jointly with a spouse, who has earned income, may contribute. In addition, a $1000 annual catch-up contribution may apply to those individuals who attain age 50 before the end of the taxable year.

Roth IRA Account in Pa

This is a special retirement plan offers a tax break when money is withdrawn from the plan during retirement. Contribution limits are similar to the Traditional IRA. As long as you are earning reportable income, you can contribute into this account. Roth IRA contributions are not tax deductible. However, all withdrawals, including earnings, are generally tax free if the account has been open for at least five years and the account holder is 59½ or older.

Coverdell Education Savings Account

Formerly called the Education IRA, the Coverdell Education Savings Account (ESA) is a type of tax-advantaged savings account created by the Taxpayer Relief Act of 1997 specifically for paying qualified higher education expenses. Contributions are non-deductible, earnings are tax-deferred and distributions are tax free if used to pay for the account beneficiary’s qualified expenses for costs of kindergarten through 12th grade, college or trade school.