LAFCU offers IRA Share Certificates with a variety of terms ranging from 3 to 60 months. All pay competitive dividends with minimum opening deposits of $500. All IRA Share Certificates are available for Traditional IRAs and Roth IRAs as well as Coverdell Education Savings Accounts. The type of IRA and maximum contribution amounts that align with your financial situation are best determined by a tax adviser. To open an IRA, give us a call or visit a LAFCU branch.

Traditional IRAs

These IRAs offer potential tax deductions on contributions made and earnings are tax-deferred until they are withdrawn. Distributions generally begin at age 59 1/2; other qualified distributions may be taken at an earlier age without incurring a penalty. Mandatory distributions begin at age 70 1/2. Consult your tax adviser for details.

Roth IRAs

While contributions are taxed, earnings are tax-free, as are qualified withdrawals. Penalty-free withdrawals can begin at age 59 1/2, providing the account has been opened for five years or more. There is no mandatory distribution requirement with a Roth IRA. Early withdrawals may also be made penalty-free in qualifying circumstances; your tax adviser can provide additional information.

Coverdell Education Savings Accounts

These accounts offer tax benefits to help you set money aside to pay for your children's or grandchildren's education expenses. Dividends accrue tax-free on non-deductible contributions and qualified withdrawals are tax-free. You can contribute up to $2,000 per year until the beneficiary is 18; the money must be used by the time the beneficiary reaches 30. The funds can generally be used to pay for higher education expenses as well as specified kindergarten through high school expenses. Speak with your tax adviser to determine the benefits specific to your financial situation.