Individual Retirement Accounts (IRAs)
Roth IRAs
These accounts offer the opportunity to take tax-free withdrawals for retirement.
Try our Roth IRA Calculator
The Roth IRA is unique because the money you contribute has already been taxed.
This means the principal amount is never subject to taxes or penalties in the future (as
long as you stay within the contribution guidelines). Second, this plan allows the
money you contribute to grow tax-deferred. If you do not withdraw any of the
earnings until you have had the Roth IRA for at least five years, those tax-deferred
earnings become tax-free. This account is available in Deposit
and Investment* IRAs.
Who is eligible?
Unlike Traditional IRAs, there is no 70 1/2 age limit on
making contributions. You simply need to have earned income equal to the amount you
contribute (up to a maximum amount set each year).
How much can I contribute?
As of 2002, the limit was increased to $3,000.
Previously, the maximum was $2,000.
What are the withdrawal requirements?
Unlike the Traditional IRA, there are
no minimum distributions at age 70 1/2. Your earnings can continue to grow until you need
them. There are special requirements, however, when these plans pass to your beneficiaries.
Invest in your future today.
A new tax law provides some very nice benefits to individuals currently saving for
retirement. Click here for more
information about the Economic Growth and Tax Relief Reconciliation Act of 2001.
For more information about opening an IRA at Northwest Community, visit yournearest branch location and talk to an Advisor. Or, send an eMail to our Phone Branch.
Back to IRAs Explained
*Securities are offered and sold by Northwest Financial Resources, and are not
insured, may lose value, and have no credit union guarantee.