Invest in your future with a savings vehicle built to make retirement easier. Many people find a Roth IRA is a better solution for their long-term investment plans. Unlike a traditional IRA, your contributions are not tax deductible, but the earnings accumulate tax-free, which can be very beneficial when you're retired and living on a fixed income.
Roth IRA's differ from Traditional IRA's in that contributions are not tax-deductible, but the interest and earnings accumulate tax-free!
Roth IRA Benefits
- Save money for retirement
- Available to anyone age 18 to 70½
- Dividends compound monthly
- Add to your IRA with automatic payment deposits
- Roll over existing retirement funds to your IRA
- No annual maintenance fee
- No mandatory distribution age
- After 5 years, earnings and principal can be withdrawn 100% tax free
- $1,000 "catch-up" contribution for age 50 and up
- Principal can be withdrawn penalty-free at any time**
Roth IRA Requirements
- Joint filers income must be less than $176,000 annually to open*
- Single filers income must be less than $105,000 annually to open*
- Contributions are not tax deductible
- Maximum $5,000 contribution limit per year
- Withdrawals may begin at age 59½
- Early withdrawals of earnings subject to penalty***
- $10 minimum deposit to open
There are no requirements to begin taking distributions by age 70½. Members may contribute to either traditional or Roth IRAs or both, but aggregate contributions between the two types of accounts may not exceed $5,000 in any year. An account must be designated as a Roth IRA when it is opened to receive the special benefits.
*Maximum $150,000 for married couples. Consult with a tax advisor about this and other aspects of IRAs.
**Subject to some minimal conditions.
***Certain exceptions apply, such as healthcare, purchasing first home, etc.
NCUA insured up to $250,000
- Which is better for me, a Traditional or Roth IRA?
- How much will my Traditional IRA be worth at retirement?
- How much will my Roth IRA be worth at retirement?
- How long will my retirement savings last?
- What rate do I need to support my retirement?
- How much do I need to fund my retirement?
- How much can I spend each month in retirement?