The principal amount of Roth IRAs are not subject to taxes or penalties, as long as you stay within the contribution guidelines. If you do not withdraw any earnings until you have had a plan for at least five years, and satisfies at least one of the qualifying events, those tax-deferred earnings become tax-free.
The amount you contribute may vary from year to year according to your income. For more information contact a customer Service Representative.
The following are features of the Roth IRA:
- Distributions may be made if the following circumstances are met:
- Attainment of age 59 1/2
- Disabled
- Purchase of first home
- Death
- Five years lapse from the first year in which a contribution was made
- If the above requirements are not met, any earnings you draw from your Roth may be subject to early withdraw penalty as well as tax ramifications. Any contributions made by account holder are removed first before distribution penalties apply.
- No required minimum distribution age as with a traditional IRA
- Under certain conditions, traditional IRAs may be converted to Roth IRAs
There is a minimum opening deposit of $100 for Roth IRAs
