Individual Retirement Accounts (IRAs)
Lincoln Savings Bank offers a number of IRAs to help you take control of your financial future. Our Personal Financial Advisors (PFAs) are available to counsel you on the right IRA product for your situation. We also back our IRA's with the outstanding service LSB has been delivering for over 100 years.
Custodial IRA
The Custodial IRA is a no fee product that is great if you are interested in FDIC insured products. There are two options for investing:
- CD's (our CD Specials offer very attractive
rates for IRA investing)
- Variable Rate Savings. Contact an LSB representative for current rates.
Self-Directed IRAs
The self-directed IRA allows you to purchase investments in a wide
variety of IRS-approved investment types. This includes FDIC-insured
IRA products, the stock and bond markets, and many others. For more
information on non FDIC-insured IRA products, visit the Investments
section of our website. Two types of self-directed IRAs include
the Roth and Traditional IRA.
Roth IRA
The primary benefits of a Roth IRA are tax-sheltered growth and tax-free
qualifying withdrawals. Other benefits include avoiding the early
distribution penalty on certain withdrawals, and eliminating the need
to take minimum distributions after age 70½. However, there is no
tax deduction for Roth contributions.
For tax year 2009, you may be eligible to make Roth IRA contributions
of up to $5,000, plus an additional $5,000 to your spouse's Roth IRA
if you're married. Those aged 50 and older by the end of the year
can contribute $6,000. There are two requirements to be eligible to
make a Roth contribution:
- You or your spouse must have qualifying income at least equal to the amount contributed.
- Your modified adjusted gross income can't exceed certain limits.
For the maximum contribution in 2009, the limits are $105,000 for
single individuals and $166,000 for married couples filing joint
returns. As your income grows above these levels, the amount you
can contribute is reduced gradually and then completely eliminated.
Traditional IRA
The primary benefit of a Traditional IRA is tax-deferred growth -
investments grow free of federal and state income taxes until money
is withdrawn. You may also be eligible to deduct your contributions
to a Traditional IRA. You pay no federal income taxes on investment
earnings in a Traditional IRA until you withdraw money. If you're
eligible, you can contribute up to $5,000 of earned income annually
for yourself (and an additional $5,000 to your spouse's IRA, if you're
married).Those aged 50 and older by the end of the year can contribute
$6,000.
