Individual Retirement Accounts

The Traditional IRA is your basic account that allows you the flexibility of making regular and ongoing contributions. Contributions to your IRA may be deductible on your income taxes and your account earnings are tax deferred (Always consult with a qualified tax or investment advisor for tax deductibility qualifications).

Traditional and Roth IRA Characteristics

Traditional IRA

• Contributions often are tax-deductible
• Earnings grow tax-deferred
• Distributions generally are taxable
• Distributions before you reach age 59½ are subject to penalty unless you meet an early distribution penalty exception.
• Required minimum distributions must begin at age 70½

Roth IRA

• Contributions are not deductible
• Earnings grow tax-deferred
• Contributions generally can be distributed tax-free at any time
• Earning can be distributed tax-free five (5) years after opening the account, or when you have reached age 59½. Tax-free distributions may also be taken is the account owner dies or becomes disabled, or for pay first-time home buyer expense, or for supporting the account owners education expenses
• Distributions are not required until after the Roth IRA holder dies

Traditional and Roth IRA contribution limits are:

• Tax Year 2011 - $5,000.
• Those individuals 50 or older can make an additional $1,000 "catch-up" contribution per year!

All PFCU IRA's may be opened as IRA Certificate Accounts as well.

This special savings program has been revised to offer MORE tax-advantages.

Call us at 800-765-4527 to discuss your IRA options.