linkedin instagram facebook plus
MENU

Save money your way. 

Whether you’re already participating in employer-provided retirement plans and want additional investment options, self-employed and want to actively save for retirement, or not saving and want to start, IRAs allow you to decide when and how much you save.

  • Because these are individual retirement programs, you don’t have to enroll through an employer. If you ever change jobs, your money stays with you.

  • Make contributions on your own schedule, or roll over funds from another account.

  • Designate beneficiaries to ensure your money lives on.


Flexibility based on your income and how you want to receive funds in retirement. 

If your income is above the limits for contributing to a Roth IRA, you can always contribute to a Traditional IRA. With a Roth IRA, you receive your funds tax-free, and with a Traditional IRA, your earnings grow tax-deferred until retirement.


A competitive, guaranteed return, with the potential for additional interest earnings (Good Experience Credits). 

Our IRAs offer a guaranteed base interest rate of 3-6%, so they’re a safe and secure option for your investments. With this base rate, you won’t have to worry about your account losing value during market downturns. Pension Fund IRAs are also eligible for additional interest earnings through Good Experience Credits.

Which IRA is right for me?

You’ve heard of Traditional IRAs and Roth IRAs — and Pension Fund offers both — but what are their real pros and cons?

In many ways, Traditional IRAs and Roth IRAs are similar: Both are individual retirement savings plans that are based on after-tax contributions. With both, you can designate beneficiaries. And, both of Pension Fund’s IRA programs receive a base rate of 3-6% and qualify for Good Experience Credits.

When choosing between the Roth and Traditional IRA, consider your income now and in retirement.

The Roth IRA is best for someone who:
  • Is relatively new in their career (tax rates are lower when income is lower)

  • Would like to withdraw retirement funds tax-free

  • Wishes to access funds earlier than retirement if necessary

  • Expects to be in the same or higher tax bracket in retirement

  • Has an income that doesn’t currently exceed Roth IRA income limits

The Traditional IRA is best for someone who:
  • Would like to save without income limits (i.e., high income earners)

  • Is looking for additional tax deductions on income

  • Plans to retire in a lower income bracket

Traditional vs. Roth IRA

The benefits of each IRA option vary based on your age, income and unique financial situation. Here we break down the differences between a Traditional IRA versus a Roth IRA to help you make the best decision based on your circumstances (with the help of your financial advisor).

Traditional IRARoth IRA
Maximum Annual ContributionFor 2017, $5,500 ($6,500 if you reach age 50 or older during the year).For 2017, $5,500 ($6,500 if you reach age 50 or older during the year).
What Funds Can I Rollover Into My IRA?Traditional IRA Pre-tax 403(b) account  Pre-tax 401(k) account  Pre-tax 457(b) accountTraditional IRA or Roth IRA Pre-tax or Roth 403(b) account  Pre-tax or Roth 401(k) account  Pre-tax or Roth 457(b) account
By When Must I Make Contributions?Contributions are due by the tax filing deadline for the year, without extensions (usually April 15).Contributions are due by the tax filing deadline for the year, without extensions (usually April 15).
Is the Contribution Limit Reduced Based on My Income?No.Yes. The ability to contribute to a Roth IRA is reduced for higher income earners.  For 2017, you aren’t eligible to contribute to a Roth IRA if your modified adjusted gross income equals or exceeds:     · $133,000 (filing single) · $196,000 (married filing jointly)
Are My Contributions Tax Deductible?Yes. However, if you or your spouse is covered by an employer retirement plan (such as the Pension Plan or TDRA), the amount you may deduct is reduced based on your modified adjusted gross income(MAGI) and tax filing status. For 2017, if you’re covered by an employer retirement plan, you may not deduct your Traditional IRA contributions if your MAGI equals or exceeds: · $72,000 (filing single) · $119,000 (married filing jointly)  Note: Even if you can’t deduct your contribution, you may still contribute to a Traditional IRA.No. Contributions are taxed when made to a Roth IRA.
How Are My IRA Distributions Taxed?Deductible contributions and earnings are included in your taxable income upon distribution. Nondeductible contributions are not taxed at distribution.  A 10% early distribution tax may apply if you take a distribution before age 59½ unless an exception applies.  Contributions are not taxed upon distribution. Earnings on your contributions are not taxed upon distribution if certain holding requirements have been met. A 10% early distribution tax may apply to earnings if you take a distribution before age 59½ unless an exception applies.  
Is There an Age Limitation for Making Contributions?Yes. Contributions are not permitted beginning with the year in which you reach age 70½.No. Contributions may be made at any age so long as you have taxable compensation.
When Do I Have to Begin Taking Distributions?By April 1 of the calendar year following the year in which you reach age 70½.You do not have to begin taking distributions during your lifetime if you are the original owner or surviving spouse of the Roth IRA.

The material contained in this chart is for informational purposes only and is not to be construed as tax, financial, or legal advice. View the IRS deductions limits.

Traditional IRA

Take advantage of potential tax benefits and flexible retirement savings options.

Roth IRA

A tax-advantaged investment tool for your retirement savings.