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Tax-free retirement income with a Roth IRA.
A Roth IRA offers tax-free income in retirement, with earnings that grow tax-free over time. Contribute after-tax dollars and enjoy flexible access to your savings. With no age limit for contributions and no required minimum distributions, it gives you greater control over your retirement strategy.
What you should know about Roth IRAs.
The core advantage of a Roth IRA.
With a Roth IRA, your earnings grow tax-free and qualified withdrawals in retirement are not taxed at all. For firefighters who expect their tax rate to stay the same or increase in retirement, or who simply want the peace of mind that comes with tax-free income, a Roth IRA offers a distinct long-term advantage.
No age limit and no required distributions.
Unlike a Traditional IRA, a Roth IRA has no age limit for contributions. You can keep adding to it past age 70 and a half as long as you have earned income. There are also no required minimum distributions during your lifetime, giving you full control over when and how you access your savings.
Converting a traditional IRA to a Roth IRA.
If you have an existing traditional IRA, converting it to a Roth IRA is an option worth exploring. Contact us for details. Consult your tax advisor or reach out to one of our tax advisors before converting, as there may be tax implications in the year of conversion.
How a Roth IRA works.
Contributions are made with after-tax dollars and earnings grow tax-free. Qualified withdrawals in retirement are not taxed. You can contribute up to $6,000 per year, or up to $7,000 if you are age 50 or older. Income limits apply and your ability to contribute may phase out at higher income levels. Early withdrawal rules apply to earnings, but contributions can generally be withdrawn at any time without penalty.
Roth IRA at a glance.
A quick snapshot of key rules, tax benefits, and limits that define how a Traditional IRA works.
| Highlights | Details |
|---|---|
| Contribution Type | After-tax dollars |
| Tax Treatment of Earnings | Tax-free when qualified conditions are met |
| Annual Contribution Limit | Up to $6,000 ($7,000 if age 50 or older) |
| Contribution Age Limit | No limit as long as you have earned income |
| Income Limits | Yes, phase-out applies at higher income levels |
| Required Minimum Distributions | None during account holder’s lifetime |
| Dividend Compounding | Monthly |
Everything you need to know about Roth IRA.
Who is eligible to contribute to a Roth IRA?
Eligibility is based on your modified adjusted gross income. The ability to contribute phases out at higher income levels. Please consult your tax advisor to confirm your eligibility and contribution limit for the current tax year.
Can I withdraw my contributions at any time?
Yes. Because Roth IRA contributions are made with after-tax dollars, you can generally withdraw your contributions at any time without taxes or penalties. Earnings are subject to different rules and early withdrawal of earnings may result in taxes and penalties in most cases.
Is there a required minimum distribution on a Roth IRA?
No. Unlike a Traditional IRA, a Roth IRA has no required minimum distributions during the account holder’s lifetime, giving you full flexibility over when and how you access your funds.
Can I contribute to a Roth IRA and a Traditional IRA in the same year?
Yes, but your total combined contributions across both accounts cannot exceed the annual contribution limit.
Fees may reduce earnings. Dividends will be compounded monthly and will be credited monthly. APY is accurate as of the last dividend declaration date. Penalty for early withdrawal may apply. Please consult your tax advisor for recommendations on which type of IRA will be most beneficial to your specific financial situation and IRS restrictions. For fees, refer to the current Schedule of Service Charges and Fees.
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