Thinking about retirement? It’s never too early to start. An IRA is a personal retirement account you set up on your own, outside of work. It’s different from a 401(k) and can include investments like stocks, bonds, and mutual funds. Whether or not you have a 401(k), an IRA can help grow your savings - and may offer tax perks too. Here are six easy steps to get started with an IRA.
There are two main types:
Before opening an IRA, make sure you meet the requirements. Both Traditional and Roth IRAs share features like contribution limits and deadlines, but they differ when it comes to income eligibility.
To open a Traditional IRA, you need earned income. For a Roth IRA, your Modified Adjusted Gross Income (MAGI) must fall within certain limits. For individuals, full contributions are allowed under $118,000, and partial contributions up to $133,000. For families, full contributions are allowed under $186,000, with partial contributions up to $196,000.
Once you know what type of IRA you’d like to open, you’ll need to choose a financial institution - like a credit union, bank, or a brokerage firm. Your choice depends on how involved you want to be. If you prefer managing your own investments, look for platforms that offer that flexibility. If you'd rather leave it to the experts, consider options that provide professional support.
At PSECU, we make it easy. Whether you're just getting started or looking for guidance, we're here to help you open your IRA and feel confident about your future.
Contact us to get started - we’re happy to help!
It’s important to understand what you’re signing up for. Before choosing a financial institution, jot down a few questions to make sure the IRA fits your needs. Here are some good ones to ask:
Although at PSECU you don’t need an initial investment, many financial institutions do require one. When you’re considering where you want to open your account, be sure you understand any minimum requirements for this initial investment.
It’s important to plan ahead. When you open an IRA, you’ll be asked to name a beneficiary, the person or people who would receive the funds if something happens to you.
Make sure to keep this information up to date, especially after major life events like marriage or the birth of a child. That way, your savings go exactly where you intend.
Ready to take the next step toward your financial future? Now that you know how to open an IRA in Pennsylvania, let us help you get started. We’ll walk you through the process, answer your questions, and make it easy to set up your account - so you can start enjoying potential tax benefits and peace of mind. Looking for more financial tips? Check out our resource center for helpful tips and resources.