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Investments

INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)

INVEST

In YOUR FUTURE

Setting aside funds in an IRA can help give you the retirement you deserve. Start with just a $100 deposit.

  • Competitive dividends above standard savings rates
  • Traditional and Roth IRA options
  • Coverdell ESA available
  • One-time $5 setup fee
  • $9 annual maintenance fee
  • $5.00 closing fee
  • $5,500 contribution limit per year
  • Additional $1,000 “catch-up” contribution allowed for ages 50+
  • Funds can be used to purchase CDs within IRA
  • Funds insured up to $250,000 by ASI
  • $100 minimum deposit to open

Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement. 

TRADITIONAL IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax1
  • Earnings are tax-deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty2
  • Mandatory withdrawals at age 70½

ROTH IRA

  • Income limits to be eligible to open Roth IRA3
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal1
  • Principal contributions can be withdrawn without penalty1
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty2
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

ESA

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement. 

COVERDELL EDUCATION SAVINGS ACCOUNT (ESA)

We also offer a Coverdell ESA to ease the transition into college for you, your kids, and your finances.
  • Set aside funds for your child’s education
  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses4
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply5
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child
  • The money must be withdrawn by the time he or she turns 306
  • The ESA may be transferred without penalty to another member of the family
  • $100 minimum deposit to open

1Subject to some minimal conditions. Consult a tax advisor.

2Certain exceptions apply, such as healthcare, purchasing a first home, etc.

3Consult a tax advisor.

4Qualified expenses include tuition and fees, books, supplies, board, etc.

5Consult your tax advisor to determine your contribution limit.

6Those earnings are subject to income tax and a 10% penalty.

*The information on the page above is for informational purposes only and should not be construed as tax advice. Please consult with a tax advisor for questions and information regarding taxes and to determine if you would benefit from tax savings.

Individual Retirement Accounts/ESA

Term Minimum Balance to Earn Dividends Dividend Rate APY
IRA Daily Savings* $100 0.10% 0.10%
6 Month** $100 4.50% 4.551%
12 Month** $100 4.25% 4.25%
18 Month*** $100 4.00% 4.060%
24 Month*** $100 3.75% 3.803%
36 Month*** $100 3.00% 3.034%
48 Month*** $100 3.00% 3.034%
60 Month*** $100 2.75% 2.778%

Certificates of Deposit

Term Minimum Balance to Earn Dividends Dividend Rate APY
6 Months at Maturity** $500 4.50% 4.551%
12 Months at Maturity** $500 4.25% 4.25%
18 Months Quarterly*** $500 4.00% 4.060%
24 Months Quarterly*** $500 3.75% 3.803%
36 Months Quarterly*** $500 3.00% 3.034%
48 Months Quarterly*** $500 3.00% 3.034%
60 Months Quarterly*** $500 2.75% 2.778%

*Dividends will be calculated on an average daily balance method and be paid on the last calendar day of each month.

**Dividends paid at maturity

***Dividends paid every ninety days from issued date until maturity

Early withdrawal penalty for Certificates 12 months or less 90 days of dividends

Early withdrawal penalty for Certificates over 12 months 180 days of dividends

To calculate a potential return on a Certificate please contact the Credit Union 

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