IRAs Mean Your Savings Are Guaranteed to Grow

At Erie Family Life, we want our Customers to maintain their independence at every stage of life. But we know that even with a pension benefit and social security, your savings might need a boost.

That’s why we offer a Traditional IRA and Roth IRA. Because they’ve funded with a fixed rate annuity, you can be assured that between now and then, your money will grow.

Our rates respond to the market conditions, but never go below a guaranteed minimum. Guaranteed.

We pay interest rates that are responsive to market conditions, but still earn their keep. Ask your ERIE Agent, Ridge Insurance Agency, Inc., for our current rates.

If you choose our flexible premium annuity to fund your IRA, the rate credited to new premiums can change at any time. If you fund your IRA with our CD-type annuity, the rate is guaranteed for 3, 5, or 7 years depending on the term you choose. For larger deposits, you can even earn a bonus interested rate for the first year.

When you’re ready to retire, we’ll be ready to talk about payout options.

You can choose income for a fixed period of time or even an entire lifetime. An annuity is still the only financial product that allows you to set up regular income you can never outlive.

Here’s how these qualified retirement plans look side by side:

	Traditonal 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 Earnings are tax deferred until they are withdrawn.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 withdraws are generally tax-free.
Who’s Eligible	Individuals 70 and a half. 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 and a half may be subject to a 10% premature distribution penalty in additon to regular income tax. Mandatory withdrawals must begin at age 70 and a half.	Withdrawals prior to the age of 59 and a half and/or five years may be subject to both income and penalty tax. No mandatory withdrawals required.

Exceptions to 10% early distribution penalty	Death or disability of IRA participant. Qualifying higher education expenses. First-time home buyers. _{Consult your tax advisor for more information about these exceptions}
Maximum Annual Contribution	2010-2011: $5,000 _{($6,000 for those over age 50)}

IRA & Roth IRA