Roth IRA's

  • Non-deductible accounts, which feature tax free withdrawals for certain distribution reasons after a 5-year holding period.
  • Must have earned income.
  • MAGI (Modified Adjusted Gross Income)cannot exceed limits, same as traditional.
  • Can be a Spousal Roth IRA based on same rules as traditional.
  • No 70-½ age restrictions.
  • No more than $2,000.00 contribution. Can be split between traditional, education and Roth but combined contributions cannot be more than $2000.00.
  • Upon IRA owner’s death, distribution is required. Beneficiaries DO NOT pay 10% penalty BUT to avoid taxes must have been held for 5 years.
  • Funds placed in this account are FDIC insured.

  • Earnings are tax free when held for 5 years and funds are withdrawn for qualified reasons.
  • Qualified Distributions after 5 years for individuals who have reached 59 ½, Death of Owner, Owner becomes disabled, and first time homebuyer with a $10,000.00 lifetime limit.
  • Principle contributions, when distributed, are not subject to 10% pre-mature distribution penalty. Individuals can get back their principal tax-free and penalty free for any reason.
  • Only when you dip into earnings do you have taxes and penalties, taxes and 10% penalty will apply.
  • Upon IRA owner’s death, distribution is required. Beneficiaries do pay 10% penalty BUT funds must meet 5-year requirement to avoid taxes.
  • It is an easy way to save for your retirement.
  • Your money is safe because the federal government insures it.

  • A current or new customer taking a new job.
  • A student graduating from college and entering the job market.
  • Customers asking about tax shelters.

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