RETIREMENT SAVINGS ACCOUNT

A Traditional Individual Retirement Account (IRA) is a tax-deferred, high-interest savings account into which you may deposit a maximum of $4,000 each year to save for retirement. If you are eligible, you can deduct your annual IRA contributions from your taxable income and defer tax payments until you withdraw funds from your IRA, usually when you are in a lower income tax bracket. PFCU also offers the new Roth IRA with different kinds of advantages, discussed below. Check with your tax professional to determine your qualification for the IRA tax deduction. If you were not eligible in the past, you may now be eligible because of changes in the law. The Taxpayer Relief Act of 1997 offers new retirement savings opportunities. Following is a brief explanation of our Traditional IRA and Roth IRA.

For more details, please call PFCU at (909) 594-1866.

For current rates, see our Rates Page.

Traditional IRA

Annual contributions to our Traditional IRA are potentially tax deductible, and your eligibility is based on your income and retirement plan participation. This IRA allows penalty-free distributions before age 59½ for certain specific reasons, such as medical expenses, health insurance premiums, disability, a first time home purchase and higher education expenses.
You may begin to freely withdraw your IRA funds without penalty after age 59½.
IRA Share and IRA Certificate accounts are available.

Roth IRA

The Roth IRA is especially beneficial to first-time home buyers. It is a nondeductible account that allows tax-free, penalty free withdrawals after age 59½, or if you become disabled, or if you purchase a first home (the account must have been open for at least five years). The Roth IRA also allows for penalty-free distributions to pay certain medical expenses, medical insurance premiums or to pay higher education expenses. Roth IRA Share and Roth IRA Certificate accounts are available.

Members’ aggregate savings are insured to $250,000 by the NCUA, an agency of the federal government. IRA accounts are insured to an additional $250,000 by the NCUA.