Roth IRA Accounts

The Roth IRA requires no initial deposit so it is easy to open. Once your Roth IRA is open, you can make deposits at any time (limitations on maximum deposit amount apply). Your Roth IRA offers these additional benefits to:

• Withdrawals of both contributions and earned dividends, are tax-free  after age 59 1/2 and the account has been open for five years
• Tax free distributions from the ROTH IRA are permitted prior to age 59 1/2 for disability and/or first time home purchase (up to a lifetime limit up to $10,000) as long as the money has been in the account for five years
• No account maintenance fees
• Deposits can be made through direct deposit and automatic payroll deductions (setting up Payroll Deduction can make this easy)
• Payouts may be taken in a lump sum or in installments (consult your tax advisor as penalties could apply)
• Dividends grow tax free
• Dividends may become taxable upon withdrawal (consult your tax advisor as penalties for early withdrawal could apply if certain eligibility is not met)
• Unlike a Traditional IRA, the ROTH IRA allows you to make contributions after the age of 70 1/2
• You must have earned income equal to the amount you contribute up to a maximum of $5,000 per year. (There are income thresholds which may reduce the amount you can contribute*

Here's how you can open an account:

You can call our 24 Hour Communications Department at877-MY-LAPFCU (877-695-2732).  You may also stop by any of our four branches.  Click here for branch locations.

If you want to see what returns you will receive from the Roth IRA, use our online Retirement Calculators.

*Please consult your tax advisor for recommendations on which type of IRA will be most beneficial to your specific financial situation. Certain IRS restrictions may apply.

¹The links provided within this area are for our Members' convenience and in no way imply an endorsement. The links may take you to other web sites, which may or may not be secure. The Credit Union does not operate these web sites and is not responsible for their content, security or privacy. Any issue arising from content, the use of transactions with or inability to access these sites, should be directed to the actual site owner.

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