The perfect IRA for you.

Jenna, Vice President, Operations

Investing in an Individual Retirement Account (IRA) is a valuable way to supplement your retirement income. IRAs offer valuable tax benefits and don’t require a company-sponsored retirement plan. This is a great time of year to get started. For most people, the biggest problem in deciding whether to open an IRA is determining their eligibility. The rules can be confusing.


So, is a traditional or Roth IRA right for you? The essential decision is whether it is more beneficial to take advantage of tax-free withdrawals upon retirement or receive an upfront tax break instead.

Here are some differences to help you decide:



Traditional IRA – Federal tax benefit now

Contribute up to age 70 ½ if you earn income

Provides a tax deduction on contributions

Must meet eligibility requirements – visit the IRS website for details

Earnings grow tax-deferred with funds being taxed only when they are withdrawn. To remain penalty free, withdrawals may begin after age 59 ½. In most cases, your tax rate will be lower in retirement, making this tax-deferred type of IRA a sound choice for many people.

Distributions must start by age 70 ½


Roth IRA – Federal tax benefit later

Contribute as long as you earn income

No tax deduction on contributions

No eligibility requirement

Earnings grow tax-free and qualified post-retirement distributions are not taxed

Does not require distributions to begin by any particular age


For more information, call an IRA specialist at (888) 858-6878.


Pacific Service CU cannot give financial or tax advice. Please consult your tax advisor or

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