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IRAs

Important IRA Updates for 2010

Imagine retiring with an IRA that grows free of federal income tax. With recent changes to IRS rules for the Roth IRA, now you can. To learn more about these changes, click here.

Should You Switch Your Traditional IRA to a Roth IRA?

Many people with traditional IRAs have questions about whether converting to a Roth is the right move. We'll help you explore which IRA may be the best way to invest your funds and find a solution that will work hardest for you. Use our IRA Chart to view these IRA options side-by-side.

What is an IRA

An IRA is an Individual Retirement Account, established by an individual to provide for his or her own retirement.This investment option is an excellent way to save for retirement where choices of tax-deferred contributions or tax-free earnings are available. Recent changes in legislation have made it even more beneficial to invest in an IRA.

With all of the options available, isn't it reassuring to know Lafayette Ambassador Bank is here to help? At Lafayette Ambassador Bank, we are committed to helping you make informed decisions about all of your investments, which is why we want you to know some IRA basics before you choose what retirement option is best for you.

Different Types of IRAs

Traditional IRA

The earnings in a Traditional IRA grow tax-deferred until they are withdrawn. Depending on your income, contributions to Traditional IRAs are also tax-deductible up to the full amount of the contribution.

Roth IRA

A Roth IRA is similar to a Traditional IRA in many ways, the major difference being that the contributions to a Roth IRA are not tax-deductible, which also means that the interest and earnings in a Roth IRA accumulate tax-free. The Roth IRA must be specified as such when the account is opened.

Spousal IRA

According to the IRS, you are eligible to contribute to a Spousal IRA if all of the following conditions are met:

You must be married at the end of the tax year
Your spouse must be under the age 70 1/2 at the end of the tax year
You must file a joint return for the tax year
You must have taxable compensation for the year
Your spouse must either have no compensation or choose to be treated as having no compensation for the tax year

Coverdell Education Savings Accounts (formerly Educational IRAs)

The purpose of this account is to provide people with a tax-advantaged savings instrument for educational needs. The funds contributed to this account are viewed as a gift to the designated beneficiary under the age of 18. It is extremely important that the funds contributed to this account be coordinated with other educational payment plans.

Lafayette Ambassador Bank's IRA Plans

Lafayette Ambassador Bank wants your retirement to be as full as your life. So we offer products and rates to build your nest egg, fast. It's never too early to start your IRA. After all, it's your future, not just your funds.

IRA Money Market

This IRA money market account allows you to take advantage of fluctuating interest rates. With just a $10 minimum deposit, you can begin saving for a secure retirement; and earn tax-deferred interest. The account features are:

Interest is compounded daily and credited monthly.
Minimum opening balance $10.
Deposits can be as low as $5.
There is no term, so money can be transferred to a different retirement account at any time.
Rate subject to change.

Fixed Rate IRA Certificate of Deposit

When you open a Lafayette Ambassador Bank fixed rate IRA CD, you can choose from a wide variety of terms! Interest is compounded daily, meaning you'll receive maximum tax-deferred interest on your IRA funds. Account features are:

A variety of terms available.
Interest is credited semi-annually on June 30th and December 31st.