Retirement Options: guide to Individual Retirement Accounts … · 2013. 1. 17. · Private LPs & LLC’s Promissory Notes Corporate Debt Offerings Potential Benefits of a Self-Directed

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.

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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IRA—With a Traditional IRA, qualifying contributions and earnings on those contributions are tax-deferred until withdrawn.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 2012-2013, 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 $6,500.1

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.

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, 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 701/2. As with Traditional IRAs, there may be penalties for withdrawals prior to age 591/2.

Please see the IRS’s Publication #590, “Individual Retirement Arrangements,” and consult your tax advisor for more information.

Quick Comparison

Traditional IRAs can help reduce your taxes in the year you make a contribution...

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.

With a Roth IRA... all earnings and subsequent qualified distributions are tax-free...

IRA

Traditional

Roth

ContributionsTaxed Growth

DistributionsTaxed

Tax Deferred

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Get started saving for your future today through Lending Club.

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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.3

Enjoy the tax advantages of a self-directed No-Fee1 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.*

$1,600,000.00

$1,200,000.00

$800,000.00

$400,000.00

$100,000 Investment Growth Over 30 Years*

0 10 20 30

Taxed Investment Tax Advantaged Growth

IRAs Can Provide Tax Advantaged Growth

1. 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 musthave 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.

*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.

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IRAs can help provide tax-advantaged investment growth.

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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 FEE2 INVESTMENTS

Real Estate

Trust Deeds/Mortgages

Private LPs & LLC’s

Promissory Notes

Corporate Debt Offerings

Potential Benefits of a Self-Directed IRAThrough 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 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.2

With a self-directed IRA... you have the freedom to invest in a variety of asset classes.

1. For more information, please refer to the SDIRA Services IRA Resource Center at http://www.sdiraservices.com/ira-resource-center/what-is-a-self-directed-ira/.

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, 2012. Please refer to the SDIRA Services IRA Fee Schedule at http://www.sdiraservices.com/files/forms/IRA_Fee_Schedule_-_eff_01.01.2012_-_SECURED.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.

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Costs & Fees of a Lending Club IRAThrough our partnership with SDIRA Services, Lending Club offers a No-Fee IRA2; 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.

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.

Small Business and Self Employed Accounts1

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, 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 http://www.irs.gov/publications/p560/index.html. 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.

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Call GET HELP by sending an email to [email protected] or by calling toll free anytime between 9-5 PT, M-F.

888.381.9309—OR—

Click DO IT YOURSELF AND START ONLINE you can save your progress, so get started today at  https://www.lendingclub.com/sdIRA/registerSDIRA.action

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

It’s Easy to Open a Lending Club No-Fee1 IRA

Questions?We’re here to help

Contact us

888.381.9309Toll free Monday-Friday from 9-5 PT

email us anytime [email protected].

A full statement regarding IRS regulations are available at the IRS website, www.irs.gov, and in IRS Publication 590 at: http://www.irs.gov/pub/irs-pdf/p590.pdf.

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.