March 30, 2015

Shred-Your-Stuff Days

Old documents containing sensitive personal or financial information are a treasure trove to potential identity thieves. Simply throwing them away in your weekly trash or recycling pickup is identity theft just waiting to happen. Bring your sensitive documents to LMCU’s annual Shred Your Stuff Day to guarantee that they’ll never be used for nefarious purposes. Limit 6 boxes per person, please.

Saturday, April 18
Portage Branch
4084 West Centre Ave., Portage
9 A.M. to 11 A.M.

Saturday, April 25
LMCU Glenwood Hills Corporate Office- New Location!
5540 Glenwood Hills Pkwy., GR
8 A.M. to 11 A.M.

For more details, visit LMCU.org/Perks or call
(616 or 800) 242-9790.

What you need to know about Required Minimum Distributions

Retired? Almost there?

When it comes time to start withdrawing the money you've spent a lifetime accumulating in your retirement portfolio, you’ll want to make sure you’re making the right decisions. You need to know that the US government requires you withdraw at least some of your funds annually, depending on the account type.

Required minimum distributions (RMDs) must be taken from your non-Roth retirement accounts by April 1 each year, beginning the year after you turn age 70½. Roth IRAs are exempt.

Some important considerations: 

You can pick the accounts you withdraw from. If you have more than one of the same type of retirement account -- such as multiple traditional IRAs -- you can either take individual RMDs from each account or aggregate your total account values and withdraw this amount from one account. As long as your total RMD value is withdrawn, you will have satisfied the IRS requirement.

If you have two different types of accounts… if you own more than one type of account, such as an IRA and an employer- sponsored plan account, you'll need to calculate your RMD for both types of accounts separately and take the proper amount from each.

You may be able to defer if you're still working. If you’re still employed at age 70½, you may be able to defer taking RMDs from your employer-sponsored plan until after you retire. You'll need to check with your employer.

The penalties can be severe for failing to comply. If you fail to take your full RMD, the IRS may assess an excise tax of up to 50% on the amount you should have withdrawn and you'll still have to take the distribution.

Taxes are still due upon withdrawal. You will probably face a full or partial tax bite for your distributions, depending on whether your traditional IRA was funded with nondeductible contributions. Note also that the amount you’re required to withdraw may bump you up into a higher tax bracket.

Have questions? Contact Lake Michigan Investment Services to sort out your specific details by calling (616) 234-6301 or go online to LMCU.org/investments.

Spring is on the move, and you could be too!

With springtime in the here and now, many will soon turn their thoughts to the purchase of a new home. Spring is historically a very active sales period— the school year is winding down, tax refunds are on their way and warm weather makes for an easier moving experience. Whatever your reason for getting back in the hunt, now is the time to get the jump on what is forecast to be a busy spring selling season.

Mortgage rates are still very attractive, even trending downward. And LMCU’s guaranteed low mortgage rates* will make sure you’ll get a great rate. Whether you are looking at a conventional 30-year fixed mortgage, or have a specialty financing need, LMCU has perhaps the widest range of loan products available anywhere.

Rely on LMCU’s mortgage specialists to help you evaluate and pull the trigger on the mortgage product that’s best for you. From jumbo and adjustable rate mortgages to FHA, rural development and medical profession loans, LMCU is the gateway to your best mortgage ever.

Spring will quickly turn to summer. Get ahead of the game on your next mortgage with Lake Michigan Credit Union! Stop by any branch, call us at (844) 890-9767 or visit us online at LMCU.org to get started!

*Lake Michigan Credit Union’s Low Rate Guarantee: LMCU will match 
any legitimate competitor’s offer, or credit the borrower $300 off closing costs.