Individual Retirement Accounts (IRA)

Individual Retirement Accounts are an excellent tax-sheltered savings plan to build a financially secure future. If you are a wage earner and under age 70-1/2, you are eligible for contributions to your IRA. New tax legislation has enabled Link FCU to introduce the new Roth and Education IRAs, now available to our members.

Traditional IRA Profile

  • Tax deductible contributions (depending on income level)

  • Withdraws without penalty may begin at age 59 1/2 and are mandatory by 70 1/2

  • Taxes are paid on earnings when withdrawn from the IRA

  • Funds can be used to purchase a variety of investments

  • Available to everyone; no income restrictions

  • All funds withdrawn (including principal contributions) before 59 1/2 are subject to a 10% penalty (subject to exception)

Roth IRA Profile

  • Contributions are subject to tax regulations

  • No mandatory distribution age

  • All earnings and principal are 100% tax free if rules and regulations are followed

  • Funds can be used to purchase a variety of investments.

  • Available only to single-filers & married couples subject to tax regulations

  • Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions)