Investing & Retirement

Whether you’re saving up for retirement, or just want to see your savings do the working for you, we have a plan to help you get the most out of your money.

Investing & Retirement
Which Investment Account is right for you?
Traditional IRAs

Traditional IRAs

Our standard retirement plan, as straightforward as they come: easy to open, simple to maintain, and offering solid tax benefits. And it’ll be there for you when you need it.

Features for Traditional IRAs ▸
Details of Traditional IRAs

Who Qualifies

Anyone who is less than 72 and received compensation

Tax Earnings

Earnings are tax deferred until retirement.

Limit on Contributions

Varies. Lower income ceiling than for a Roth IRA.

Traditional IRAs offer:

  • Independence. They can be opened and funded without any employer participation.
  • Immediate tax benefits. Contributions may be tax-deductible,* and earnings are tax-deferred until retirement. See your tax advisor for details.
  • Accessibility. Funds are always available, something not generally true of employer plans.
  • Flexibility. There is no minimum contribution in any year.

Additional Information:

  • You must be less than 72 years old and have received compensation to qualify for making an IRA contribution.
  • You are automatically eligible for a tax deduction if neither you, nor your spouse, are covered by an employer-sponsored retirement plan and your Modified Adjusted Gross Income is under IRS limits.
  • When you take distributions, both your deductible contributions and earnings will be taxed at your regular income tax rate.

Want to know if a Traditional IRA is right for you?

* Consult your tax advisor about potential tax savings with individual retirement accounts. Retirement account insurance protection is separate and apart from insurance coverage on other credit union accounts. Traditional, Roth and SEP IRAs are insured aggregately to $250,000.

Roth IRAs

Roth IRAs

Invest your after-tax dollars and watch them grow. And after just five years, principal and earnings can be withdrawn tax free.

Features of Roth IRAs ▸
Details for Roth IRAs

Who Qualifies

Anyone who is employed and has earned income, even after turning age 72.

Tax Earnings

Contributions are not tax deductible.

Limit on Contributions

Varies; higher income ceiling for contributions than Traditional IRA; contributions allowed in addition to your 401(k).

Roth IRAs offer:

  • Tax-free retirement income. Contributions are not deductible, but earnings grow tax-free.
  • Higher income ceiling for contributions than Traditional IRA
  • Contributions allowed in addition to your 401(k) plan
  • No requirement to begin distributions at age 72
  • Ability to withdraw contributions without penalty at any time and to withdraw earnings after five-year holding period based on age or special circumstances, such as buying a first home, disability, age 59 ½ or death

Additional Information:

  • If you are employed and have earned income, you can make contributions to a Roth IRA, even after turning age 72.
  • Since no annual required minimum distributions apply during your lifetime, you can let your savings accumulate tax free much longer — and on your schedule.
  • You must meet income limits to make contributions

Want to know if a Roth IRA is right for you?

Coverdell Education Savings Account

Coverdell Education Savings Account

Invest for your child or grandchild’s education while avoiding state and federal taxes in the process.

Features of Coverdell Education Savings ▸
Details for Coverdell Education Savings

Who Qualifies

A parent or grandparent of a child in school, from kindergarten through college.

Tax Earnings

No income tax on earnings if paid directly to the child or grandchild’s educational establishment.

Limit on Contributions

Total contributions for beneficiary may not exceed $2,000 in any one year, no matter how many accounts established.

Coverdell ESAs offer:

  • Tax-free earnings
  • The ability to invest up to $2,000 per year per child
  • Penalty-free withdrawals for elementary, secondary and higher education expenses
  • The option to transfer the account if child does not attend an institution of higher education
  • The option for almost anyone to make contributions

Based on income requirements, your contributions can be:

  • Make up to the current maximum per year for the designated beneficiary (child)
  • Made if beneficiary is under the age of 18 (or beyond for special needs)
  • Transferred to IRS defined qualified family members if not used by beneficiary

Uses for ESAs

Contributions and earnings are tax- and penalty-free, if used for qualified education expenses, which include:

  • Tuition and fees
  • Books and supplies
  • Computer equipment to be used for education
  • Transportation
  • Room and board-only in some cases
  • Want to learn more? Visit a branch
    or call us at 215-934-3500 or 800-832-PFCU (outside the metropolitan area)

Additional Products & Services

Fixed Annuity

Fixed Annuities

Looking for a steady, safe, and dependable way to save for the future? Fixed annuities take the guesswork out of investment.

Financial Planning

Financial Planning

Need a little financial know-how? We can help make your money do the working for you.

Retirement Planning

Retirement Planning

It’s never too early to start saving for later on. We’ll help set up a nest for that egg of yours.


National Association of Federal Credit Unions 
PFCU is a proud member of the National Association of Federal Credit Unions
National Credit Union Administration 
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.
Equal Housing Lender 
We do Business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

We provide links to external websites for your convenience. Philadelphia Federal Credit Union does not endorse and is not responsible for their content, links, privacy or securities policies.

Please note that the amount of money contained in your investment accounts are considered non-deposit products and therefore, are not NCUA insured, not credit union guaranteed, may lose value, are not guaranteed by any government agency. Securities, Financial Planning and Insurance products are offered through LPL Financial, and its affiliates, Member FINRA, SIPC. LPL Financial and Philadelphia Federal Credit Union are independent entities.