Keeping You Moving Forward
Roth IRAs are a powerful retirement savings tool to add to your portfolio. Funded with contributions made after-tax, your Roth IRA funds have the potential to grow and provide tax-free income during your retirement.
As long as your Roth IRA is at least five years old and you are at least 59½, you can withdraw your premium and your earnings without paying taxes or penalties. You can also withdraw money penalty–free if you’ve become permanently disabled or meet the requirements for a first–time home purchase.
Roth IRAs allow you to choose from a variety of investments, such as stocks, bonds, CDs, mutual funds and ETFs. You can find a mix that works for your timeline and goals.
Traditional IRAs have Required Minimum Distributions (RMDs) that mandate owners to withdraw a certain amount each year. Roth IRAs do not have RMDs, meaning you have more flexibility regarding when to access your money.
Contributing to a Roth IRA
Your contribution limit is determined by your modified adjusted gross income (MAGI) and your tax return filing status. Those over 50 can also make “catch-up contributions.” Talk with an advisor about what those limits are for you and how you can maximize the benefit of your retirement savings tools.