Your Legacy Federal Credit Union has two Individual Retirement Account (IRA) products available: a Traditional IRA and a Roth IRA.
What's the difference between the two?
- The contributions made to a Traditional IRA can be deducted from your taxable wages on your income tax return, if you qualify. Contributions made to a Roth IRA cannot be deducted.
- Participants in a Traditional IRA must take distributions by April 1 following the year they turn age 72 and by December 31 each year after. For Roth IRA participants there are no distributions requirements as long as you are the original owner.
- Traditional IRA withdrawals and distributions of the principal are taxable vs. Roth IRA withdrawals and distributions are not taxable. However, if you are under 59 ½, you will have to pay a 10% penalty tax for early withdrawals for both Traditional and Roth IRAs Unless you meet certain qualifications:
- Withdrawing for Early Death or Disability
- Qualifying higher education expense
- Buying your first home, up to $10,000
- Unreimbursed medical expenses, greater than 10% of your Adjusted Gross Income
How can I invest my IRA?
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- You can invest in a traditional Savings Account
- Or you can invest in one of our Share Certificates
Both options are available for both Traditional and Roth IRAs.
Need Help?
Check out our online banking tutorials and tour videos for self-review or contact us during business hours and we will assist as we are able over the phone. Need more hands-on training? Stop into the branch during regular business hours for one-on-one assistance.