Roth IRA

An individual retirement account (IRA) is a personal savings plan that offers specific tax benefits while helping you achieve your retirement goals. IRAs are one of the most powerful retirement savings tools available to you. Even if you’re contributing to a 401(k) or other plan at work, you should also consider investing in an IRA.

Roth IRA contributions are not deductible, but distributions (including earnings) can be tax free at retirement if certain circumstances exist. (Earnings you withdraw are tax-free after age 59 1/2 and the account has been established for a minimum of five years).

Benefits

  • Contributions can be withdrawn at any age without taxes or penalties
  • Earnings you withdraw are tax-free after age 59 1/2 as long as the account has been established for a minimum of five years
  • Contributions can be made after age 70 1/2 as long as you have earned income
  • No required minimum distributions during your lifetime
  • Beneficiaries may pay no income tax on proceeds
  • Wide range of investment options available

Eligibility

  • Anyone who has earned income equal to or greater than their IRA contribution amount
  • If you contribute to an employer-sponsored plan such as a 401(k), you are still eligible to contribute to a Roth IRA as long as you meet the Income Limits
  • If you have no earned income but your spouse earns enough income to cover your contribution as well as their own, you can contribute to a Roth IRA

Please check with St. Ansgar State Bank if interested.