Traditional IRA

Life's next chapter can be anything you want it to be.

A tax-advantaged Traditional IRA opens the door to infinite possibilities.

One attractive feature of a Traditional IRA is that it starts providing benefits right away by offering potential tax deductions each year you make a contribution. But the bigger payoff is in the future, when your savings provide the financial resources for a retirement lifestyle that can be active and adventurous, relaxing and laid back, or filled with family and friends. Or most likely, a combination of all of the above.

• Contribute up to $7,000 annually (Up to $8,000 if you are age 50 or over). There is no minimum contribution level.
• Depending on your income level and other factors, you may be able to take a tax deduction for any year you make a contribution
• All annual dividends and interest income are tax-exempt
• In general, you may begin making penalty-free withdrawals at age 59 ½
• There are a number of exceptions to the withdrawal age. For instance, you may withdraw funds early and penalty-free to buy your first home, if you become disabled or to cover medical or education expenses.
• You must begin making withdrawals by age 73. Those funds are taxed as regular income.
• Consult with your financial advisor or a PFCU representative for more information on Traditional IRAs to see if they are right for you

Additional Resources

• Explore the tax implications for Individual Retirement Accounts: IRS: Frequently Asked Questions about IRAs.
• Talk to one of PFCU's Investment Consultants.