Roth IRA

While Roth IRA contributions are not tax deductible, earnings are free from federal tax if certain conditions are met. The Roth IRA also has a lot of flexibility to help you meet your retirement goals. You can access your contributions without IRS penalty, you may continue to save for retirement past age 70½, and there are no mandatory distribution requirements.

Key Features

Unlike the Traditional IRA, your Roth IRA earnings are tax-free when distributed, rather than tax-deferred, if you meet certain criteria. This is a great benefit when saving for retirement.

Earnings from the Roth IRA are tax-free and penalty free if:

• The contributor has participated in a Roth IRA for at least 5 years AND
• The contributor is at least 59½ years old, dies or is disabled, or if the funds withdrawn are used to buy a first home.

Unlike the Traditional IRA, the Roth IRA does not require distributions to begin at age 70½. Contributions can also continue past age 70½ if you are still earning income.

How Much You Can Contribute

The most that an individual can be contribute to a Traditional IRA is $5,000 ($6,000 if you are age 50 or older). For married couples filing jointly, combined total contributions can be as much as $10,000 ($11,000 if only one of you is age 50 or older or $12,000 if both of you are age 50 or older).

You can contribute to both a Traditional IRA and a Roth IRA in the same year; however, the total contribution is limited to $5,000 ($6,000 if you are age 50 or older) for individuals and $10,000 ($11,000 if only one of you is age 50 or older or $12,000 if both of you are age 50 or older) for joint filers.

Important note:   The IRA features described are for informational purposes only and are subject to change. Advice from a tax advisor or legal counsel is recommended.To open an IRA account, please visit your local branch.