Individual Retirement Account		Rollover IRA
An Individual Retirement Account is a plan that allows you to contribute a portion of your earned income each year. There is a maximum limit per year and those individuals over age 50 can make an additional “catch up” contribution. Based on your goals and needs, we can help you choose the correct IRA. We offer Traditional, Roth, & Rollover IRAs. Each IRA is available in either 12, 18, 36, or 60 month Certificate of Deposit.		Rollover is the transfer of money from a qualified retirement plan such as a    401(k) into an IRA. If you receive a disbursement from your company-sponsored retirement plan, a rollover IRA could be to your benefit. You will continue to receive the tax-deferred status of your retirement savings and will avoid penalties and taxes.

Traditional IRA		Roth IRA
A Traditional IRA is basically an individual savings plan. Contributions are made up to a particular limit, and the contribution is tax deductible. Funds invested and earned in a traditional IRA are subject to income taxes at time of withdrawal. Withdrawals can be made without penalty once you reach the age of 59½; you must begin withdrawing from your account when you reach the age of 70½.		A Roth IRA is also an individual savings plan. Contributions can be made up to a particular limit on a non-deductible basis. You can make a contribution to your Roth IRA but not take a deduction on your income tax for the contribution like you can with a traditional IRA. Withdrawals are tax free within certain restrictions. Withdrawals can be made without penalty once your reach the age of 59½, provided the funds have been in the account for five years. Unlike a traditional IRA, you can keep contributing to a Roth IRA even if you have reached the age of 70½ (provided that you are still earning income).

 For alternative and additional IRA options, contact PFSB Financial Services, our investment services division, at 815-223-4300.