Traditional, Roth & Direct Rollover Individual Retirement
Accounts (IRAs) are a smart and secure means of long-term
investing for your retirement. Choose from our basic IRA Account
or an IRA Share Certificate, or both.
Traditional IRAs
They are available to anyone with earned income and you may
contribute up to $4,000 per tax year. If your spouse is employed,
he/she can also open an IRA and contribute earned income for
the year or $4,000 - whichever is less. Or, you may also open
a spousal IRA on his/her behalf with the total contribution
of $8,000 for the year, as long as a contribution to either
of the accounts is no more than $4,000.
Roth IRAs
Individuals with earned income may contribute up to $4,000
for this nondeductible IRA that features tax-free earnings.
If your spouse is also employed, he/she can also open a Roth
IRA and contribute up to $4,000. That's a total of $8,000
between the two accounts.
Direct Rollover
With a Direct Rollover IRA, your retirement funds move directly
from a qualified plan to a Traditional IRA. This will enable
you to continue to earn high dividends even after you retire.
With Direct Rollover IRA, you can invest in the Basic IRA,
the IRA Share Certificates, or both.
Basic IRA
Club Account (Traditional, Roth & Direct Rollover) These
rates are set, posted, and compounded monthly by PEFCU's Board
of Directors. The advantage of the Basic IRA is that your
money is more accessible - not subject to any Credit Union
penalties. You also have the choice to transfer your IRA funds
to a higher earning IRA Certificate.
IRA Share Certificate (Traditional, Roth & Direct Rollover)
IRA Share Certificate rates are market based and are fixed
for the length of the term. This means you'll enjoy the same
great return throughout the term of the Certificate. Also,
while there are Credit Union and IRS penalties for early withdrawal,
the dividends you receive will probably be higher than those
of the Basic IRA.
Coverdell Education Savings Account (Formerly Educational
IRA)
This is a nondeductible account with tax-free
withdrawals for a child's education expenses. You may contribute
up to $2,000 per year on behalf of the child less than 18 years
of age. All earnings on the account are tax-free
provided the money is used for education expenses. This includes
tuition, fees, books, supplies and equipment required for the
enrollment or attendance at an eligible education institution.
Make the Smart Choice - Call us today for a fact filled brochure
and application.
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