INDIVIDUAL RETIREMENT ACCOUNTS

Your future starts now. Planning for your retirement cannot begin soon enough. An Individual Retirement Account - or IRA - from PEFCU gives you the power of compounding interest, so the earlier you start your IRA account, the more you'll have when it's time to retire. Plus an IRA is a great tool for rolling over retirement plans from former employers.

There are two different types of IRAs: Roth IRA and Traditional IRA. We can help you select the right one for you. PEFCU offers deposit IRA products as well as investment IRA products. Our knowledgeable staff is happy to walk you through the entire process. You can also utilize the free consultation services offered by our Trust and Financial Center.

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Traditional IRA

Who can contribute?

• Anyone younger than age 70 ½ who earns compensation (or who is filing jointly with a spouse who earns compensation)

Tax benefits:

• Many people can deduct contributions on their tax returns
• All earnings are tax-deferred
• Taxable distributions of earnings are penalty-free for a first-time home purchase, certain higher-education expenses and large medical costs

Roth IRA

Who can contribute?

• Anyone who earns compensation (or who is filing jointly with a spouse who earns compensation) with the following modified adjusted gross income:
• Up to $95,000 (single filers)
• Up to $150,000 (joint filers)

Tax benefits:

• Contributions are nondeductible, but qualified distributions are tax-free
• Taxable distributions of earnings are penalty-free for a first-time home purchase, certain higher-education expenses and large medical costs

*For disclosures, please see Guide to Member Services and Further Information.