Individual Retirement Plans (IRA)
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Saving now means succeeding later. Check out all of our account options.
Stay ahead of the gameThese tax-advantaged savings accounts can help you eventually settle down in style. We offer several different options so you can pick the one that's right for you. Save up for retirement with an IRA or get a head start on school expenses with a Coverdell ESA.
- Roth IRAs
- Traditional IRAs
- IRA Certificates
- Coverdell Education Savings Accounts
Type Minimum Balance APY* 3 Year-IRA Savings Certificate (Traditional) $1,000 1.05% 2 Year-IRA Savings Certificate (Traditional) $1,000 1.00% 1 Year-IRA Savings Certificate (Traditional, Roth, Coverdell) $1,000 0.80% IRA Savings Account (Traditional, Roth, Coverdell) $0.01 0.20%
*Annual Percentage Yield. Rates are subject to change without prior notice. Savings Rates and terms effective April 30, 2020. Fees could reduce the earnings on the account. Penalty for early withdrawal of Savings and IRA Certificates.
Yes! Moving funds from another qualifying plan to a PHFCU IRA is simple and may be processed as a transfer or rollover. Consult a tax adviser to help decide which is best for you.Yes. Here's some of the key features:
Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed.
- Dividends paid monthly and calculated daily
- Minimum opening deposit is $1,000
- Terms available: 1 year (Roth, Coverdell, Traditional); 2, or 3 years (Traditional),
- Dividends earned are tax-deferred
- Contributions may be tax deductible
Currently, you can contribute $6,000 if you are under 50, or $7,000 if you are 50 years or older. Coverdell is $2000 per year.Yes. For IRAs, most withdrawals before age 59.5 will result in IRS penalties.A Traditional IRA lets you defer your taxes until you withdraw in retirement. Basically, this means you can shrink the total taxes you pay now. You must start withdrawing by age 70.5, at which time you'll need to pay taxes on your withdrawals. With a Roth IRA, you need to pay taxes up front. However, you won't have to pay taxes on your withdrawals in retirement, and there is no requirement for when you must start making withdrawals.
- The beneficiary will not owe tax on the distributions if they are less than a beneficiary’s qualified education expenses at an eligible institution.
- This benefit applies to qualified higher education expenses as well as to qualified elementary and secondary education expenses.
- May be used for qualified education expenses, such as tuition and fees, required books, supplies and equipment and qualified expenses for room and board.
- The Hope and lifetime learning credits can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits.