Take control of your financial future.
A Roth IRA allows you to invest your after-tax dollars today, let the investment grow tax-deferred until retirement, then withdraw your principal and earnings tax-free after five years. (You may be subject to income taxes and a 10% penalty on the earnings if withdrawn before age 59 1/2.)
Roth IRAs offer:
- Tax-free retirement income. Contributions are not deductible, but earnings grow tax-free.
- Higher income ceiling for contributions than Traditional IRA
- Contributions allowed in addition to your 401(k) plan
- No requirement to begin distributions at age 70 1/2
- Ability to withdraw contributions without penalty at any time and to withdraw earnings after five-year holding period based on age or special circumstances, such as buying a first home, disability, age 59 1/2 or death
Facts about Roth IRAs:
- If you are employed and have earned income, you can make contributions to a Roth IRA, even after turning age 70½.
- Since no annual required minimum distributions apply during your lifetime, you can let your savings accumulate tax free much longer — and on your schedule.
- You must meet income limits to make contributions
Is a Roth IRA right for you?