Traditional IRA
Contributions may be tax-deductible (subject to IRS rules); earnings grow tax-deferred. Withdrawals are taxed as ordinary income and may be subject to a 10% additional tax if taken before age 59½.
- 2025 contribution limit: $7,000 (or $8,000 if age 50 or older)
- Required Minimum Distributions begin at age 73 under current law
- Funded with fixed insurance contracts — not stocks, mutual funds, or variable products
Roth IRA
Contributions are made after tax; qualified distributions of earnings are federal income-tax-free when the account has been held for at least five years and the owner is age 59½ or older (or another qualifying event applies).
- 2025 contribution limit: $7,000 (or $8,000 if age 50 or older), subject to income phase-outs
- Roth eligibility phases out at higher incomes — confirm with your tax advisor
- Earnings are tax-free only on qualified distributions; non-qualified withdrawals of earnings may be taxable and subject to a 10% additional tax
SEP & SIMPLE IRA
Employer-sponsored IRAs for self-employed individuals and small employers.
- SEP IRA: employer contributions up to 25% of compensation, subject to the 2025 dollar limit of $70,000
- SIMPLE IRA: for employers with 100 or fewer employees; includes required employer contributions
- Funded with the same fixed insurance contracts as a Traditional IRA
403(b) / 457(b) / TSP / Pension Rollover
Direct rollover of eligible retirement-plan dollars into a fixed-rate IRA without creating a current taxable event, when IRS eligibility rules are satisfied.
- A direct (trustee-to-trustee) rollover avoids the 20% mandatory federal withholding that applies to most eligible distributions paid directly to the participant
- 60-day indirect rollovers are limited to one per 12-month period across all IRAs
- The receiving IRA holds a fixed annuity contract; we do not offer securities or variable products
Rollover · How it works
Direct rollover — no current taxable event when eligibility rules are met.
Old 403(b) / 457(b) / TSP / Pension
Where eligible retirement plan dollars live today
Direct trustee-to-trustee transfer
Funds do not pass through your personal bank account
New fixed-rate IRA
Held in a fixed annuity contract subject to its own terms
Important disclosure
Pebyl Financial does not provide tax or legal advice. IRA contribution limits, deductibility, income phase-outs, and required minimum distribution rules are governed by the Internal Revenue Code and may change. Consult a qualified tax advisor before making contribution, conversion, or rollover decisions.