Roth IRAs

Many ideals are changing in today's society.  Concern regarding the long term viability of Social Security continues to grow, and Americans are looking for new ways to secure their financial future.


  • The trend toward changing employment more frequently lessens an individual's opportunity to acquire great reserves in company pension plans.
  • Many new entrepreneurs striking out on their own cannot offer retirement options to themselves or their employees until the company is more financially secure.
  • Social Security is no longer seen as the answer to retirement funding.

Individuals need to take the lead in building their retirement nest egg.  The Roth IRA gives you the ability to invest your after-tax dollars today, let the investment grow tax-deferred, and withdraw your principal and earnings possibly tax and penalty free.


What makes the Roth IRA unique?


Imagine for a moment that you have just received a check. You look at your summary and notice that no federal income taxes have been withheld. Your initial reaction is that something is wrong—it's not if this check is from your Roth IRA.


Two factors make this possible:


  • First, the money you contribute to a Roth IRA has already been taxed. (In other words, you can't take a tax deduction for your Roth IRA contribution).  So the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines.
  • Second, this retirement 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 and have a qualifying event, those tax-deferred earnings become tax-free.

Unlike the Traditional IRA, there is no 70½ age limit on making contributions. You do, however, need earned income, which is defined the same as for Traditional IRAs.  As long as you satisfy the Roth IRA requirements, you may contribute to a Roth IRA, even after the year in which you attain age 70½.


Contact one of our member service representatives for more details today.