ABA Routing # 236084298

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.

Which Investment Account is right for you?

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?

Crunch the numbers with our online calculators
Explore the tax implications for Individual Retirement Accounts: IRS: Frequently Asked Questions about IRAs
Talk with a certified financial planner or request a FREE consultation
Want to learn more? Visit a branch
or call us at 215-934-3500 or 800-832-PFCU (outside the metropolitan area)

* 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

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 And after just five years, principal and earnings can be withdrawn tax free.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?

Crunch the numbers with our online calculators
Explore the tax implications for Individual Retirement Accounts: IRS: Frequently Asked Questions about IRAs
Talk with a certified financial planner or request a FREE consultation
Want to learn more? Visit a branch
or call us at 215-934-3500 or 800-832-PFCU (outside the metropolitan area)

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)