Retirement

Your Credit Union is pleased to offer both Traditional and Roth Individual Retirement Accounts (IRAs).

The Lisbon Community Federal Credit Union IRA Program provides a safe and secure means of saving for your retirement. IRA funds can be directed to an IRA Share Account or an IRA Share Certificate. Our IRA Share Account requires a minimum balance of $100.00 and offers a tiered dividend rate based on the balance in your account. This rate varies based on the balance of your account. Our IRA Share Certificate Program requires a minimum balance of $1,000.00 and allows you to lock in a rate for a term of 6 months to 5 years. For current rates, see IRA Rates.

IRAs are highly regulated by the federal government with IRA rules being consistent from financial institution to financial institution. IRAs offer tax benefits, but these benefits vary on the type of account you open and your Modified Adjusted Gross Income (MAGI). IRA rules are constantly changing. Members who are interested in opening an IRA are encouraged to consult their tax advisor to make sure they open the appropriate type of IRA.

It is important to note that a husband and a wife may each have an IRA, even if only one person has earned income. It is possible for you to contribute to both a Traditional IRA and a Roth IRA, but your total contributions are limited to $6,000.00. Members 50 years or older have the opportunity to make "catch up" contributions of up to $1,000, raising the total amount you may contribute to $7,000 for the tax year.

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Generally speaking, Traditional IRAs and Roth IRAs differ as follows:

Traditional IRAs

• Who can contribute? Anyone who has earned income or who is filing a joint return with a spouse who has earned income.

• How much can I contribute? Please see the table below.

• Tax considerations? Earnings grow tax deferred, and contributions may be deductible.

Fully Deductible Contributions:

• Single individuals not active in employer retirement plans

• Single individuals active in employer retirement plans with MAGI of $68,000.00 or less per year (2022)

• Married couples with neither spouse active in an employer retirement plan

• Married individuals active in employer retirement plans with joint tax returns showing MAGI of $109,000 or less for 2022

• Married individuals not active in employer retirement plans with spouses who are as long as MAGI is $204,000.00 or less

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Roth IRAs

Who can contribute? Single tax filers with Modified Adjusted Gross Income of $124,000.00 or less or joint tax filers with Modified Adjusted Gross Income of $196,000.00 or less may make full contributions to a Roth IRA. Reduced contributions are allowed for higher incomes: up to $137,000.00 for single filers and up to $206,000.00 for joint filers.

• How much can I contribute? Please see the table below.

• Tax Considerations? Earnings are tax-free if kept for five tax years and withdrawn for a qualified reason (age 59 1/2, disabled, death, 1st home purchase). Regular contributions can be withdrawn tax and penalty fee at any time.

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Contribution Table

For additional information on our IRAs, please contact one of our Member Service Representatives at (207) 353-4144 or toll-free at (877) 353-4144.

Lisbon Community FCU IRA accounts are federally insured up to $250,000.00 by the National Credit Union Administration, a U.S. Government Agency.