Individual Retirement Accounts

Lincoln Savings Bank offers a number of IRAs to help you take control of your financial future. Our IRA Specialists 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:

  1. CD's (our CD Specials offer very attractive rates for IRA investing)
  2. Variable Rate Savings. Contact an LSB representative for current rates.

Self-Directed IRAs

The self-directed IRA allows you to purchase a wide variety of investments. This includes FDIC-insured IRA products. For more information on non FDIC-insured IRA products, visit the Investments section of our website.

There are two types of retirement accounts: Roth IRA 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 2012, 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:

  1. You or your spouse must have qualifying income at least equal to the amount contributed.
  2. Your modified adjusted gross income can't exceed certain limits. For the maximum contribution in 2012, the limits are $110,000 for single individuals and $173,000 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of a Traditional IRA is tax-deferred growth - investments grow free of federal and state income taxes until money is withdrawn.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.

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