Saving for retirement is necessary, yet often times confusing. Will Social Security be around when I retire, and will it generate enough income? Make the best of your family's future by investing long-term through Luana Savings Bank and insure yourself against uncertainty!Luana Savings Bank offers:
|Income Tax||Grows Tax-Free||Contributions||Contribution Limit|
|Traditional IRA*||Taxed at withdrawal (except post-tax contributions)||Must have earned income to contribute||$6,000 ($7,000 if 50 or older)|
|SEP IRA*||Taxed at withdrawal (except post-tax contributions)||Must have earned income to contribute||$6,000 ($7,000 if 50 or older)|
|Roth IRA*||Taxed at contribution||Must have earned income (within limits) to contribute||$6,000 ($7,000 if 50 or older)|
|HSA**||Taxed at withdrawal unless used for Medical Expenses||Must have high deductible insurance policy||Self $3,550; Family $7,100. 55 or older $1,000 additional catch-up allowed. 2022 increases $50/self and $100/family.|
*Please contact your Tax Consultant for more information on IRA's.
**Please contact your Insurance Provider for more information on HSA's.
IRA's are subject to a contribution limit set by the federal government. In 2021 that limit is $6,000. Since 2002, the annual contribution has increased, on average, about $250 per year. An individual that starts saving the maximum allowed contribution at age 22, taking into account a 3% APY, will have a balance of approximately $780,000 by age 65! The total of actual contributions will be approximately $500,000 while interest accounts for $280,000 over those 43 years.
If that same individual only saves 50% of the maximum contribution per year, equating to $3,000 in 2021, their IRA balance at age 65 at 3% APY would be approximately $390,000 (total contributions totaling approximately $250,000 and interest $140,000).
|18 Month Variable||0.400%||0.400%|
|18 Month Fixed||0.450%||0.450%|
|30 Month Fixed||0.500%||0.500%|
|42 Month Fixed||0.650%||0.650%|
|Deposit Amount||Interest Rate||APY|
|$0 to $1,000||0.050%||0.050%|
|$1,001 to $2,500||0.050%||0.050%|
|$2,501 to $5,000||0.050%||0.050%|
|$5,001 and above||0.050%||0.050%|
You must maintain the minimum daily balance to obtain the disclosed APY (Annual Percentage Yield). Luana Savings Bank reserves the right to change interest rates and terms without notice. You may incur a penalty for early withdrawal and fees may reduce earnings.