Traditional and Roth IRAs
You want your golden years to be comfortable. We know that even with a pension benefit and
Social Security, your savings might need a boost.
That’s why Erie Family Life offers a Traditional IRA and a Roth IRA.* Because they’re funded
with a fixed rate annuity, you can be assured that, between now and then, your money will
grow.
Erie Family Life’s rates respond to market conditions, but never go below a designated
minimum. Guaranteed.
Here’s how these qualified retirement plans look side by side:
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Traditional IRA |
Roth IRA |
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How the plan works
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- Contributions are generally tax-deductible.
- Earnings are tax deferred until they are withdrawn.
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- Contributions are not tax-deductible.
- Qualified withdrawals are generally tax-free.
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Who’s eligible?
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- Individuals under 70 ½.
- Individuals or married couples having at least one spouse with earned income.
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- There is no age limitation.
- Individuals or married couples having at least one spouse with earned income.
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Distributions
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- Withdrawals prior to age 59 ½ may be subject to a 10 percent premature distribution
penalty in addition to regular income tax.
- Mandatory withdrawals must be made at age 70 ½.
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- Withdrawals prior to age 59 ½ and/or after 5 years may be subject to both income tax
and penalties.
- No mandatory withdrawals required.
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Exceptions to 10 percent early distribution penalty |
Death or disability of IRA participant; qualifying higher education
expenses; first-time homebuyers. (Consult your tax advisor for more
information about these exceptions.) |
Need help choosing a plan? Contact our agency. We can explain
each plan in greater detail.
*Life insurance and annuity products are not available in New York. Refer to our
Disclaimer for additional information.