Types of Retirement Accounts

Traditional IRA

Contributions are made pre-tax. Unlike retirement plans that require you to work a certain number of years before the funds are yours, a Traditional IRA is 100% yours from the beginning. You may make withdrawals at any time. Note that withdrawals before age 59½ are currently subject to a 10% IRS penalty.

Roth IRA

This investment grows tax-free. Under certain situations, distributions are tax-free after five years. Contribution limits depend on your income and other IRA investments made during the year. Minimum distributions are not required at age 70½.

Coverdell Education Savings Account

Distributions from this IRA are tax-free for qualified elementary, secondary or higher education costs, which can include tuition, computer equipment, room and board and more—including those for Lutheran schools.

Need to know more about retirement accounts? Visit our IRA Service Center to learn more.

 

Retirement Account Rates

PartnerPLUS Term Note – Fixed

January 2017

MinimumTermRateAPY *Penalty
* APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance.
$500 to $25,0002 years2.000%2.015%90 days of interest
$500 to $25,0004 years2.500%2.524%180 days of interest
Over $25,000 - portion of balance > $25,000 earns second-tier fixed rate---1.000%1.005%Depends on term

See all investment rates.

Term Note – Fixed

January 2017

MinimumTermRateAPY *Penalty
* APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance.
$5006 months0.500%0.501%90 days of interest
$5009 months0.625%0.626%90 days of interest
$5001 year0.750%0.752%90 days of interest
$50018 months0.875%0.878%90 days of interest
$5002 years1.000%1.004%90 days of interest
$5003 years1.125%1.130%120 days of interest
$5004 years1.250%1.256%180 days of interest
$5005 years1.500%1.508%180 days of interest

See all investment rates.

Term Note – Floating

January 2017

MinimumTermRateAPY *Penalty
* APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance.
$10030 months1.000%1.004%120 days of interest
$10060 months1.250%1.256%180 days of interest

See all investment rates.

IRA Dedicated Certificate

January 2017

MinimumRateAPY *
* APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance.
$1000.375%0.376%
$1,0000.500%0.501%
$5,0000.625%0.626%
$10,0000.875%0.878%

See all investment rates.

Jumbo Note – Fixed

January 2017

MinimumTermRateAPY *Penalty
* APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance.
$100,0005 years1.875%1.888%180 days of interest

See all investment rates.

Jumbo Note – Floating

January 2017

MinimumTermRateAPY *Penalty
* APY is the annual percentage yield, representing the effective rate of interest when all principal and interest payments are retained in the investment balance.
$100,00060 months1.625%1.635%180 days of interest

See all investment rates.

 

Consulting Your Tax Advisor

Neither LCEF nor its representatives give legal, accounting or tax advice. We always suggest that you consult with your tax advisor regarding the applicability of this information to your own situation. For assistance in completing the necessary forms or if you have any questions, please call 800-843-5233.

UMB Bank n.a. serves as the custodian of the LCEF IRA/HSA.


Penalty Structure

Term Notes issued or renewed prior to Oct. 1, 2012 are subject to a former penalty structure until the note reaches maturity.

Term of NoteInterest Foreited
4 years - 10 years90 days of interest
11 years - 15 years120 days of interest
16 years - 20 years180 days of interest