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:

  Traditional IRA Roth IRA
How the plan works
- Contributions are generally tax-deductible.
- Earnings are tax deferred until they are withdrawn.
- Contributions are not tax-deductible.
- Qualified withdrawals are generally tax-free.
Who’s eligible?
- Individuals under 70 ½.
- Individuals or married couples having at least one spouse with earned income.
- There is no age limitation.
- Individuals or married couples having at least one spouse with earned income.
Distributions
- 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.
- Withdrawals prior to age 59 ½ and/or after 5 years may be subject to both income tax and penalties.
- No mandatory withdrawals required.
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.