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

A coin being deposited into a piggybank.

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

A hand collecting money.

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

A shield of protection.

Supports deposit products

Choosing deposit products offers a guaranteed return on principal, Federally insured up to $250,000

Roth IRA Calculator

Frequently Asked Questions

How much do I need to retire?

To learn more, watch this video from Jane Krueger, CFP, Financial Advisor, CUSO Financial Services, L.P. at Patelco Credit Union.

Are you Retirement Ready

Tax advantage of after-tax benefits with a Roth IRA
Get tax free growth and tax-free withdrawals at retirement.

Recommended Resources

We've made it easier for you to learn more about retirement savings.

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.