Individual Retirement Accounts
An Individual Retirement Account is a savings option used to designate funds for retirement planning. You can devote contributions to either a Traditional or Roth IRA in a Share Savings Account or a Certificate of Deposit.
IRA Types
An Individual Retirement Account may have income restrictions, contribution and withdrawal limitations or other additional requirements. To find the IRA that is best for you, we recommend you refer to your tax advisor or financial planner.
Traditional
As defined by Investopedia, a Traditional Individual Retirement Account allows individuals to direct pretax income towards investments that can grow tax-deferred; no capital gains or dividend income is taxed until it is withdrawn. Tax benefits such as these are why the Traditional IRA is a common pathway used in developing a stable, long-term savings plan.
Roth
A Roth Individual Retirement Account is funded with after-tax dollars and because of this all Roth IRA contributions are not tax deductible. The original contribution to your Roth IRA can be withdrawn at any time, tax and penalty free.
Educational
An Educational Individual Retirement Account is a savings plan option for higher education. Parents and guardians may make nondeductible contributions to an Education IRA for children under 18. The Education IRA is also known as the Coverdell Education Savings Account.
Your Next Step
At PFCU, we are happy to assist you with navigating your financial path. If you would like to open an account today or have additional questions about our IRA offerings, please call us at 847-MYPFCU1/847.697.3281 or stop into one of our local offices. Please remember it’s always best to consult with your tax advisor or financial planner to find the account that is right for you.
