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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.