Puget Sound Cooperative Credit Union | Serving the Puget Sound region since 1934, one member at a time.

IRAs – They’re Not Just for Tax Time.

PSCCU offers our members Traditional, Roth and ESA IRA accounts to help with retirement and education expenses.

Contrary to what many people think, an IRA (Individual Retirement Account) can be opened or contributed to at any time during the year, not just at tax time. A traditional or Roth IRA can be funded any time during the year and up until April 15 of the following year, and the traditional IRA can still be deducted from the income taxes of eligible investors. However, the earlier in the year an IRA is opened, the greater the long-term accumulation potential.

Changing jobs or retiring? Get the peace of mind you’re looking for and consider rolling over your 401(k) to a PSCCU - IRA where it’s safe and secure. Rolling over your 401(k) or other qualified retirement plan from your previous employer gives you more flexibility and control while keeping all the great tax advantages. If you have one or more 401k’s sitting around from previous jobs and you are finding it a hassle to keep track of everything, you can roll them over tax and penalty free into a traditional IRA. Consolidation can be a beautiful thing. Your PSCCU Individual Retirement Account is federally insured up to $250,000, so you know your hard-earned money will be there when you need it, regardless of where the stock market is headed.

PSCCU also offers IRA certificate accounts with 12, 24 and 48 month terms. An IRA certificates from PSCCU is a great way to maximize your investment.

Traditional IRA:

IRA stands for ‘Individual Retirement Account’. Typically, contributions to a traditional IRA are tax deductible. You are taxed when you pull out distributions in retirement.

Roth IRA:

Your contributions are not deductible, as they may be with a traditonal IRA. With a Roth IRA you are since you pay the taxes on your contributions you are typically not taxed when you pull out your distributions in retirement.

Educational IRA

A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education expenses. The total contributions for the beneficiary of this account cannot be more than $2,000 in any year, no matter how many accounts have been established. A beneficiary is someone who is under age 18 or is a special needs beneficiary. Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. 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.