ROTH IRA

Unlike a Traditional IRA, a Roth IRA offers tax-deferred growth and potentially tax-free withdrawals once you reach retirement. For example, contributions to a Roth IRA are not tax deductible while contributions to a traditional IRA may be deductible. However, while distributions (including earnings) from a traditional IRA may be included in income, the distributions (including earnings) from a Roth IRA are not included in income as long as you satisfy the requirements.

BENEFITS OF A ROTH IRA

    • Contributions can be made to your Roth IRA after you reach age 70½
    • You can leave amounts in your Roth IRA as long as you live
    • Withdrawals of contributions are free from federal income tax
    • Withdrawals of earnings are free from federal income tax if you satisfy the requirements:
      • If it been at least 5 years from the beginning of the year in which you first set up and contributed to a Roth IRA
      • You are age 59½ or older at the time of distribution
      • If the distribution being used to buy or rebuild a first home
      • If you have become disabled or have passed away

If you do not meet the requirements, the portion of the distribution allocable to earnings may be subject to tax and it may be subject to the 10% additional tax.

You may download account forms or request an account kit by calling 1-888-793-5333.