Roth IRA
A Roth IRA differs from a Traditional IRA in that the money you contribute is taxed now, instead of at withdrawal. For many customers, a Roth IRA is preferable because the tax is incurred now—when you are earning more income—as opposed to during withdrawal, when on a fixed income.
- Summary
- All earnings are tax-free upon withdrawal*
- Allows contributions to grow tax-free
- $25 minimum contribution; only $100 to open
- Can be opened and funded without employer participation
- Funds are always available, but early withdrawal results in a penalty fee**
*Contact a tax professional for information regarding your personal tax benefits.
**There are some exceptions to make early, penalty-free withdrawals from your IRA, such as medical expenses, purchasing a first home or higher education expenses.
