Roth IRA

A Roth individual retirement account (IRA) lets you save and invest after-tax dollars. Funds contributed to a Roth IRA have already been taxed. Any earnings grow tax-free if certain requirements are satisfied—and there are no additional taxes on regular contributions because you have already paid taxes on these funds.

In a Roth IRA, you can make investments to potentially increase the value of your account. Only a few investments are restricted by the Internal Revenue Service (IRS).

Roth IRA contributions must be made with earned income, and that income must fall within certain Modified Adjusted Gross Income (MAGI) limits. View the specific MAGI limits for Roth IRA accounts here.

Key Features

• Tax-free growth
  Any earnings on contributions made to your account will grow tax-free. All regular contributions made to a Roth IRA can be withdrawn tax-free at any time, if certain requirements are satisfied, because your contributions have already been taxed.

• No distribution requirements
  A Roth IRA does not require you take distributions based on age, unlike other tax-deferred retirement plans such as a traditional IRA or a 401(k) plan.

• Tax-free withdrawals
  Roth IRA distributions, including the withdrawal of earnings, may be tax-free if certain requirements are met.

• First-time home buyer
  Up to $10,000 can be withdrawn from a Roth IRA, penalty free, if the money is used to acquire a principal residence for a first-time home buyer. The home buyer must be the Roth IRA’s owner, their spouse, or their lineal ancestors and descendants. The individual cannot have owned a home in the previous 24 months.

NOTE: Please visit www.irs.gov for complete rules and regulations regarding Roth IRAs. Certain restrictions apply regarding prohibited transactions.

Frequently Asked Questions

about Roth IRAs