Take advantage of potential tax benefits and flexible retirement savings options.
With Pension Fund’s Traditional Individual Retirement Account (IRA), you’re in control of your retirement. For those who aren't able to participate in an employer-sponsored plan or for those who want to save more to retire comfortably, our Traditional IRA will help you meet your savings goals.
Enjoy a competitive guaranteed return. Our Traditional IRA offers a guaranteed base interest rate (currently 3.5%) with the opportunity to earn Good Experience Credits, so it’s a secure option for your investments. With this base rate, you won’t have to worry about your accounts losing value during market downturns.
Reduce your tax liability with tax-deductible contributions.* If your taxable compensation falls within a certain threshold, you can deduct your IRA contributions from your taxes partially or in full (View IRS’s IRA guidelines here). Even if you aren’t eligible for a tax deduction, you can still take advantage of a Traditional IRA to contribute additional funds for retirement.
Benefit from tax-deferred savings until distribution (or retirement). Generally, Traditional IRA funds aren’t taxed until distribution. Participants can even withdraw funds without penalty under some circumstances. Distributions are then taxed at your ordinary income tax rate.
Contributions may be fully or partially tax deductible*
Earnings grow tax-deferred until retirement (good for someone planning on retiring in a lower tax bracket)
No income limits for contributions
Offers a guaranteed base return
Provides opportunity for a higher return through Good Experience Credits
Traditional IRA FAQs
What are Good Experience Credits?
Good Experience Credits are additional interest earnings. Each year, the Pension Fund Board of Directors reviews reserves required for current and future benefits, as well as reserves needed for any potential market declines. When reserves exist above what is required, the Board of Directors may declare Good Experience Credits for all IRA participants. Over time, these extra earnings can make a significant difference when saving for retirement.
When are my earnings taxed with a Traditional IRA?
Because the Traditional IRA uses after-tax dollars, your taxes are deferred until funds are distributed. This means a 25-year-old who opens an IRA and puts in $5,500/year at an annual return rate of 6% will have a savings total of $902,262 at age 65. If his/her savings were taxed at an annual rate of 25% over those 40 years instead, he/she would end up with $615,157 at age 65.
Will my Traditional IRA contributions be tax-deductible?
If your taxable compensation falls within a certain threshold, you can either fully or partially deduct your IRA contributions from your taxes (View IRS’s IRA guidelines here). For IRA owners who aren’t eligible for a tax deduction, you can still contribute additional funds for retirement (without income limits).
Am I eligible to sign up for Pension Fund’s Traditional IRA?
You’re eligible if you have earned income as an employee of a congregation, ministry or organization related to the Christian Church (Disciples of Christ), Christian Churches/Churches of Christ, Churches of Christ or Stone-Campbell/Restoration Movement.
Can I roll over funds to Pension Fund’s Traditional IRA?
You can roll over funds if:
Funds are coming from an existing, qualified retirement fund; AND
You’re a current employee of a congregation, ministry or organization related to the Christian Church (Disciples of Christ), Christian Churches/Churches of Christ, Churches of Christ or Stone-Campbell/ Restoration Movement; OR
You’re a former employee with a Pension Plan, TDRA or IRA program.
You can roll over funds from the following into an IRA:
Pre-tax 403(b) account
Pre-tax 401(k) account
Pre-tax 457(b) account
Existing IRAs from outside Pension Fund