Prepare for Your Future with an IRA or HSA

Terms to know:

IRA: Individual Retirement Account

HSA: Health Savings Account

Traditional IRA: Allows you to save for your own retirement with tax-deferred earnings and a possible tax deduction.

• The main advantage includes being eligible to deduct contributions on your federal income tax return or qualifying for a tax credit of up to $1000.
• Each year, an annual contribution limit is determined by the IRS. As of 2025, the current limit is $7000, or $8000 if you are 50 or older.

Roth IRA: Helps you save for retirement with the potential for future tax-free income.

• Advantages include tax free distributions, not being required to take money out and a possible tax credit of up to $1000.
• Each year, an annual contribution limit is determined by the IRS. As of 2025, the current limit is $7000, or $8000 if you are 50 or older.

Coverdell ESA: An easy way to start saving for a child’s education.

• Contributions and earnings are tax free when being used for qualified education expenses.
• As of 2025, $2000 may be contributed to this type of IRA on an annual basis.

*Our 3 types of IRA accounts are also able to take advantage of our great CD rates.

HSA: A savings account for medical expenses if you have a high-deductible health plan.

• Tax deduction for contributions.
• The contributions remain in your account until you use them.
• The interest earnings are tax free.
• Distributions are tax free if you pay for a qualified medical expense.
• Annual contribution limits vary year-to-year. In 2025, self-coverage is $4300 or $5300 if age 55 or older. Family coverage is $8550 or $9550 if age 55 or older.

*All of these accounts allow beneficiaries for added peace of mind.

If you are interested in setting up an IRA or HSA, stop into a branch or give us a call!

Katherine Loehr

Loan and Account Servicing Specialist

This blog is not on behalf od Peninsula Federal Credit Union.