Retirement Options: guide to Individual Retirement Accounts through Lending Club

Transcription

1 Retirement Options: guide to Individual Retirement Accounts through Lending Club This material is provided for informational purposes only. Information in this brochure is not directed to the specific financial situation or investment needs of any particular person and should not be regarded as tax, investment or financial planning advice. We recommend you consult with your financial and/or tax advisor prior to investing or selecting any type of investment account, or if you have any specific questions regarding the material provided herein. Lending Club notes are offered by prospectus filed with the SEC. You should review the risks and uncertainties described in the prospectus prior to investing.

2 2 Roth or Traditional IRA? IRAs are personal savings plans designed to provide tax advantages for people who set aside money for retirement. Traditional IRA With a Traditional IRA, qualifying contributions and earnings on those contributions are tax-deferred until withdrawn. Early withdrawals can lead to substantial penalties. A Traditional IRA can also be funded for a non-wage earning spouse. Roth IRA Contributions to Roth IRAs are not tax-deductible, but all earnings and subsequent qualified distributions are tax-free. Traditional IRAs, SIMPLE IRAs and SEPs can generally be converted to Roth IRAs by paying income taxes on the IRA distribution before rolling over to a Roth IRA. Traditional and Roth IRAs For , those under age 50 may contribute up to $5,500 annually (or 100% of compensation, whichever is less). Individuals age 50+ may contribute up to $6, Quick Comparison IRA Traditional Roth Contributions Taxed Tax Deferred Growth Distributions Taxed Individual Retirement Accounts Lending Club has partnered with SDIRA Services, a subsidiary of Horizon Bank, to offer both Traditional and Roth Individual Retirement Accounts (IRAs). Traditional IRAs can help reduce your taxes in the year you make a contribution and enable your investment to grow tax-deferred until you begin taking withdrawals. Traditional IRAs can help reduce your taxes in the year you make a contribution... Example: Taxes on an Adjusted Gross Income of $100,000 Note: Assumes a blended federal and state tax rate of 28%. With a Roth IRA... all earnings and subsequent qualified distributions are tax-free... With a Roth IRA, contributions are not tax-deductible, but all earnings and subsequent qualified distributions are tax-free. Your investments grow unburdened by annual taxation and there is no requirement to begin regular withdrawals at age 70 1/2. As with Traditional IRAs, there may be penalties for withdrawals prior to age 59 1/2. Please see the IRS s Publication #590, Individual Retirement Arrangements, and consult your tax advisor for more information. 1. Please refer to IRS Publication 590, Individual Retirement Arrangements, for additional information. Material provided for informational purposes only. This information should not be regarded as tax, investment or financial planning advice. Please consult with your financial and/or tax advisor prior to investing or choosing an account.

3 Get started saving for your future today through Lending Club. 3

4 4 IRAs Can Provide Tax Advantaged Growth $100,000 Investment Growth Over 30 Years* $1,600, $1,200, $800, $400, Taxed Investment Tax Advantaged Growth *Assumes Traditional IRA with monthly reinvestment of capital, a nominal investment rate of 9.5% per year on investments and a tax rate of 28% on returns. Enjoy the tax advantages of a selfdirected No-Fee 1 Traditional or Roth IRA that allows you to invest in Lending Club Notes. A single $100,000 investment can grow to more than $1.5 million dollars over 30 years.* How can I fund my IRA account? There are two basic ways you can fund an IRA account with Lending Club. If you currently have retirement savings in either a 401(k) or IRA, you may be able to allocate funds from your current account to a Lending Club account. Alternatively, you could fund a self-directed IRA account with Lending Club directly with an eligible annual contribution. If you currently have a 401(k) or IRA with another financial institution: 401(k) Rollovers if you have a retirement plan with a previous employer, you can roll over those funds to a new or existing Lending Club IRA. Our preferred IRA custodian - SDIRA - offers a fast and easy rollover service. IRA Transfers you can transfer funds from another IRA to fund your investment through Lending Club. 2 If you do not currently have a 401(k) or IRA with another financial institution: Annual Contribution you can contribute up to $5,500 per tax year (or $6,500 if you are age 50 or older) to an IRA Lending Club s preferred IRA custodian is SDIRA Services, a subsidiary of Horizon Bank. To qualify for a No-Fee IRA through SDIRA Services you must have an initial minimum balance of $5,000 or more in Lending Club Notes and maintain this minimum invested balance for the first 12 months. To continue to qualify for the No-Fee IRA after the first year, you must maintain an invested balance of $10,000 or more in Lending Club Notes. All account balances are determined as of the last business day immediately prior to the anniversary date of the opening of your account. An annual fee of $100 applies to accounts that don t meet these requirements. Lending Club reserves the right to modify or discontinue this offer at any time. See the SDIRA Services IRA Fee Schedule for a description of the Basic IRA asset type limitations on your Lending Club self-directed IRA Account. 2. Limitations and/or fees may apply. Please contact your current IRA custodian for more information. 3. Please refer to IRS Publication 590, Individual Retirement Arrangements, for additional information. Material provided for informational purposes only. This information should not be regarded as tax, investment or financial planning advice. Please consult with your financial and/or tax advisor prior to investing or choosing an account.

5 IRAs can help provide tax-advantaged investment growth. 5

6 6 With a self-directed IRA through Lending Club you can invest in: Lending Club Prime Consumer Notes Stocks and ETFs Mutual Funds Bonds Brokerage Accounts CDs Certificates of Deposit Precious Metals and Commodities Public REITs, LPs, and LLCs ADDITIONAL FEE 2 INVESTMENTS Real Estate Trust Deeds/Mortgages Private LPs & LLC s Promissory Notes Corporate Debt Offerings Potential Benefits of a Self-Directed IRA Through our partnership with SDIRA Services, Lending Club offers a flexible type of retirement account: a self-directed IRA. 1 Standard or non-self-directed retirement accounts often limit the types of assets the account can hold. For example, standard IRAs offered by financial institutions that also offer mutual funds often prohibit purchases of mutual funds offered by other financial institutions. In addition, standard IRAs often limit investments to publicly offered assets; asset classes such as real estate or private placements are usually prohibited. With a self-directed IRA... you have the freedom to invest in a variety of asset classes. With a self-directed IRA through Lending Club, you have the freedom to invest in a variety of asset classes. For example, funds in a Lending Club self-directed IRA can be used to invest in stocks, bonds, CDs, mutual funds, ETFs, precious metals, real estate and even private offerings For more information, please refer to the SDIRA Services IRA Resource Center at 2. SDIRA Services may charge an additional fee to all accounts that maintain these types of investments. The information given here is current as of March 12, Please refer to the SDIRA Services IRA Fee Schedule at pdf for more information. Material provided for informational purposes only. This information should not be regarded as tax, investment or financial planning advice. Please consult with your financial and/or tax advisor prior to investing or choosing an account.

7 7 Costs & Fees of a Lending Club IRA Small Business and Self Employed Accounts 1 Lending Club also supports two retirement options for individuals who are self-employed or who own a business with fewer than 100 employees. SEP Simplified Employee Pension Plans allow employers to take a tax deduction when they contribute to the retirement accounts of their employees. SEP-IRAs can be set up for any size of business, including self-employed investors. SIMPLE A Savings Incentive Match Plan for Employees allows employers and their employees to make pre-tax contributions (similar to a Traditional IRA) into an employee s retirement account. These are limited to companies with less than 100 employees. Through our partnership with SDIRA Services, Lending Club offers a No-Fee IRA 2 ; not all financial institutions offer a no cost solution. Depending on the type of account, you could pay significant administrative fees to have an IRA initially set up. In addition, some financial institutions charge an annual Safekeeping Fee of roughly $25 for each asset held in your IRA, which can reduce the returns your IRA is producing. Through our partnership with SDIRA Services, Lending Club offers a No-Fee, self-directed IRA - which combines the best of both worlds Fortunately, there are some No-Fee IRA alternatives - including those offered by Lending Club in partnership with SDIRA Services - that do not charge these fees. 2 However, many of these No-Fee alternatives are Standard IRAs, which are limited in terms of the investments you can hold in your account. Through our partnership with SDIRA Services, Lending Club offers a No-Fee, self-directed IRA - which combines the best of both worlds. 1. A full statement regarding IRS regulations on small business and self employed accounts is in IRS Publication 560 at Lending Club s preferred IRA custodian is SDIRA Services, a subsidiary of Horizon Bank 2. To qualify for a No-Fee IRA through SDIRA Services you must have an initial minimum balance of $5,000 or more in Lending Club Notes and maintain this minimum invested balance for the first 12 months. To continue to qualify for the No-Fee IRA after the first year, you must maintain an invested balance of $10,000 or more in Lending Club Notes. All account balances are determined as of the last business day immediately prior to the anniversary date of the opening of your account. An annual fee of $100 applies to accounts that don t meet these requirements. Lending Club reserves the right to modify or discontinue this offer at any time. See the SDIRA Services IRA Fee Schedule for a description of the Basic IRA asset type limitations on your Lending Club self-directed IRA Account and more information regarding the fees that may apply to your account. Material provided for informational purposes only. This information should not be regarded as tax, investment or financial planning advice. Please consult with your financial and/or tax advisor prior to investing or choosing an account.

8 8 It s Easy to Open a Lending Club No-Fee 1 IRA Questions? We re here to help Contact us Toll free Monday-Friday from 9-5 PT us anytime retire@lendingclub.com. A full statement regarding IRS regulations are available at the IRS website, gov, and in IRS Publication 590 at: p590.pdf. Call GET HELP by sending an to retire@lendingclub.com or by calling toll free anytime between 9-5 PT, M-F OR Click DO IT YOURSELF AND START ONLINE you can save your progress, so get started today at FUND ACCOUNT by making an annual contribution, transfer from a current IRA custodian account, or by rolling over an old 401(k). Gather Needed Information Your Driver s License Number Your Social Security Number Your current custodian account information (if applicable) Social Security Numbers of your Beneficiaries 1. To qualify for a No-Fee IRA through SDIRA Services you must have an initial minimum balance of $5,000 or more in Lending Club Notes and maintain this minimum invested balance for the first 12 months. To continue to qualify for the No-Fee IRA after the first year, you must maintain an invested balance of $10,000 or more in Lending Club Notes. All account balances are determined as of the last business day immediately prior to the anniversary date of the opening of your account. An annual fee of $100 applies to accounts that don t meet these requirements. Lending Club reserves the right to modify or discontinue this offer at any time. See the SDIRA Services IRA Fee Schedule for a description of the Basic IRA asset type limitations on your Lending Club self-directed IRA Account. Material provided for informational purposes only. This information should not be regarded as tax, investment or financial planning advice. Please consult with your financial and/or tax advisor prior to investing or choosing an account.