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The Roth IRA was established on January 1, 1998, as a result of the Taxpayer Relief Act of 1997. The Roth IRA provides no income tax deduction for contributions, but if you meet certain requirements,
all earnings are tax-free when you or your beneficiary withdraw them.
You and your working spouse may contribute to a Roth IRA at any age, up to certain income levels.
- It can provide tax free retirement income.
- Contributions are not deductible from your federal income taxes, but you generally have access to them at any time without tax penalty.
- After you’ve had a Roth IRA for five tax years, you can withdraw earnings tax-free if you:
- Are 59½ or older
- Make the withdrawal during a year in which you’ve paid qualified first-time home-buying expenses up to $10,000
- Become disabled
- Your beneficiary will receive the value of the Roth IRA tax-free if your death occurs after having the IRA for five years.
- Though your Roth IRA contributions receive no tax deduction, your ability to receive distributions not subject to tax may be beneficial, especially if you expect your tax rate to be the same or higher at retirement.
- Since there are no taxes during the accumulation phase, assets can grow faster.
- Provides access to contributions should an emergency arise.
- Provides a source of funds for heirs.
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- Contributions are not tax-deductible, but earnings grow tax-deferred. Contributions and earnings may be withdrawn tax-free if the plan has been established for at least five years and you are age 59½ or older.
- Contributions can continue after age 70½ if you still receive compensation.
- Distributions are not required to be taken at age 70½.
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- Those who desire additional retirement income.
- Those who will still be in a high tax bracket after retirement.
- Those who want to leave a tax-free legacy to their heirs.
- Those who might need access to emergency funds.
- Those who have maxed out other retirement plans.
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For additional information regarding Farm Bureau's products and services, please contact your local registered representative using the
Agent Locator . |
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IMPORTANT: The information and material contained on this Web site is not an offer to sell or a solicitation to buy any security or any insurance product in any jurisdiction. No security or other insurance product is offered or will be sold in any jurisdiction in which such offer or solicitation purchase or sale would be unlawful under the securities, insurance or other laws of such jurisdiction. Not all products are available in all states. Exclusions, limitations and reductions may apply. This Web site briefly highlights Farm Bureau's insurance policies and their benefits. The contract is contained only in the policy. Farm Bureau products are offered by Farm Bureau agents -- for more information about any Farm Bureau product, please contact your local agent or nearest office using the Agent Locator.
Agent must be a registered representative of EquiTrust Marketing Services, LLC to discuss mutual funds or variable products.
There are various income limits and other requirements necessary to qualify for some of the tax-savings benefits of all IRAs. See your Farm Bureau representative and tax adviser for information regarding your particular situation.
Life insurance and annuity products offered through Farm Bureau Life Insurance Company+/West Des Moines, IA
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