What is a Roth IRA?
A Roth IRA is a type of individual retirement account in which individuals contributed money to a Roth IRA has already been taxed. As long as you stay within the contribution guidelines, the principal amount is never subject to future taxes or penalties.
Roth IRA contributions grow tax-deferred.1 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. That means any penny you withdraw in retirement, stays in your pocket.
You may make tax-free and penalty-free withdrawals from your Roth IRA if you satisfy two conditions. First, your Roth IRA must have been open for a minimum of five years. Second, the withdrawal must be made because of the occurrence of one of the following events:
- Age 59½
- Death
- Disability
- First home purchase
Distributions that meet the above requirements are referred to as "qualified distributions." While you may take distributions from your Roth IRA at any time, distributions which are not qualified distributions may be subject to taxes (and in some cases early distribution penalties) to the extent they exceed your aggregate contributions to Roth IRAs.
Grow your retirement savings
Tax-free growth potential
Money grows tax free and you can withdraw tax free after age 59½
Cut your tax bill
No required minimum distributions for as long as you live
Add money for years
You can put money in your account as long as you have earned income that qualifies
No beneficiary taxes
Beneficiaries earn tax-free withdrawals
Customized IRA plan
Talk to a CFS Financial Advisor available through CUSO Financial Services, L.P. ("CFS") about your options2
Supports deposit products
Choosing deposit products offers a guaranteed return on principal, Federally insured up to $250,000
Roth IRA Calculator
Frequently Asked Questions
To learn more, watch this video from Jane Krueger, CFP, Financial Advisor, CUSO Financial Services, L.P. at Patelco Credit Union.
Recommended Resources
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1 Consult tax advisor about Roth IRA tax advantages.
2 Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Patelco Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
Financial Advisors are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.