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Roth IRA

A tax-free way to prepare for retirement.

Unlike Traditional IRAs, contributions to a Roth IRA aren’t tax-deductible – however, they do give you the chance to build earnings that are completely tax-free when you withdraw them. All you have to do is hold your Roth for at least five years, and wait until you’re at least 59½ to withdraw your money.

Roth IRAs also give you the option of continuing to contribute after you reach 70½ years of age. Even if you participate in an employee-maintained retirement plan, or if your spouse has compensation or alimony income that’s equal to the amount you’re contributing to your Roth IRA, you can make regular contributions.

Unlike traditional IRAs, you’re not required to take minimum distributions, so you may have more money to transfer to your beneficiaries in the event of your death. Please consult your tax advisor for more information regarding your individual situation.

Roth IRAs offer these benefits:

  • Tax-free earnings on after-tax dollars1
  • Choose from a Savings Account or a wide range of CD terms
  • Competitive interest rates
Tax Year IRA Contribution

2011 and beyond

Contribution Limits
$5,000

2011 and beyond

Catch-up Contributions
$1,000

1. Withdrawals made before you’ve had the Roth IRA for 5 years and before age 59½ may be subject to an additional 10% tax penalty.


Converting Your IRA

Converting your IRA may have significant tax consequences. Before you take this step, be sure to consult with a tax professional.

Rolling Over Your IRA

If you are retiring or changing jobs and anticipate withdrawing money from your employer's retirement plan, you may find yourself in a tax bind unless you rollover your assets into an IRA or another qualified plan. Ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us, and you won’t pay the mandatory 20% withholding tax.

You also can do an IRA-to-IRA rollover. Complete the rollover within 60 days from the date you receive the assets from your old IRA to qualify. Just go to your financial institution and close your IRA, then bring the check to us. The IRS limits the number of these rollovers to one in a 12-month period.