Individual Retirement Accounts (IRA)
Save Today, Celebrate Tomorrow
This page helps customers learn more about saving for retirement with an Individual Retirement Account, also known as an IRA. An IRA can be a helpful way to set money aside for the future while keeping retirement savings separate from everyday accounts and short-term savings goals.
At Ladysmith Federal, we know retirement planning can feel like a big step, but getting started does not have to feel overwhelming. Whether you are beginning your retirement savings journey, adding to an existing plan, rolling over funds, or looking for a local place to keep your retirement savings, an IRA may help you plan ahead with more confidence.
This page is designed to provide helpful information about Ladysmith Federal IRA accounts, retirement savings options, contribution planning, and local banking support. Customers can use this resource to learn more about how an IRA may fit into their long-term financial goals and how saving today can help create more choices for tomorrow.
If you have questions about opening an IRA, contribution limits, account options, rollovers, or how an Individual Retirement Account may support your retirement plan, contact Ladysmith Federal by giving us a call at 715-532-3389. Our local team is here to provide personal service, trusted guidance, and support as you prepare for the future.
We offer two Individual Retirement Accounts (IRAs) as well as an Education Savings Account (ESA):
Traditional IRA
A Traditional IRA allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year for which they are made. If you are younger than age 70½ for the entire tax year and have earned income (or your spouse has earned income), you are eligible to establish a Traditional IRA.
Traditional IRAs at Ladysmith Federal earn 0.25% higher interest than our CDs for the same term.
Roth IRA
A Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a 5-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a Traditional IRA.
There are two requirements for eligibility to contribute to a Roth IRA:
- You or your spouse must have earned income
- Your modified adjusted gross income (MAGI) cannot exceed certain prescribed limits.
Roth IRAs at Ladysmith Federal earn 0.25% higher interest than our CDs for the same term.
Coverdell Education Savings Account (ESA)
A Coverdell Education Savings Account (ESA) is exactly what it sounds like — a savings arrangement in which contributions are invested for the purpose of funding an individual’s education. Eligible taxpayers may deposit up to $2,000 per year into a Coverdell ESA for a child under the age of 18.
Amounts deposited in the account grow tax free until distributed, and the child will not owe tax on any withdrawal from the account if the qualified education expenses at an eligible educational institution for the year equal or exceed the amount of the withdrawal.
ESAs at Ladysmith Federal earn 0.25% higher interest than our CDs for the same term.
Individual Retirement Accounts
| Product | Min. Opening Deposit | Interest Rate | APY* |
|---|---|---|---|
| 3 Month | $0.00 | 0.85% | 0.85% |
| 6 Month | $0.00 | 1.50% | 1.51% |
| 1 Year | $0.00 | 3.90% | 3.95% |
| 2 Year | $0.00 | 2.65% | 2.67% |
| 3 Year | $0.00 | 2.70% | 2.72% |
| 5 Year | $0.00 | 2.70% | 2.72% |
Interest Rates as of August 18, 2026.
Retirement Calculator
Estimate how your savings, contributions, and timeline may help you prepare for retirement. This calculator is a helpful starting point for reviewing your goals and planning for the future.
Tuition Calculator
Plan ahead for future education costs by estimating tuition savings needs over time. This calculator can help you explore savings goals and prepare for upcoming college or training expenses.