Roth IRA Accounts
Roth IRA Accounts may offer greater tax savings and withdrawal flexibility than a Traditional IRA.
The SECURE Act 2020 and your IRA
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law on December 20, 2019 and many of of its provisions took effect on January 1, 2020.
- Traditional IRA owners can now contribute after age 70½
- Delayed age for Required Minimum Distributions (RMDs)
- Distribution taken for birth or adoption
- Expanded definition of the eligible compensation for Graduate student IRA contributions
Learn more about the provisions of the SECURE Act 2020.
Roth IRA Accounts may offer greater tax savings and withdrawal flexibility than a Traditional IRA. Both Contributory and Conversion plans are available.
While Roth IRA contributions are not tax-deductible, contributions and earnings can be withdrawn tax-free on qualified distributions.
Roth IRA Accounts have no mandatory annual distribution requirements and you can contribute beyond age 70½. Eligibility depends on income.
Roth IRA Accounts
- No IRA setup, administration or annual maintenance fees
- Convenience of payroll allocations and automated deposits
- Automatic IRA distributions available
- 10-business-day grace period and automatic renewal on Certificate Accounts
- Competitive IRA interest rates
- Knowledgeable, qualified staff
- Monthly statement
Roth IRA Account Summary
| Qualifications: | Must have earned income. There are no age restrictions. |
| Maximum Contributions: | 2020: $6,000, plus $1,000 "catch-up" contribution (if age 50 or over during the year) 2019: $6,000, plus $1,000 "catch-up" contribution (if age 50 or over during the year) |
| 2019 Contribution Deadline: | April 15, 2020 |
| Tax Status of Earnings: | Earnings grow tax-deferred. Tax-free on qualified withdrawals. |
| Contribution Restrictions: |
Yes, 2020 contributions phase out between $124,000 - $139,000 for singles and $196,000 - $206,000 for married couples filing jointly. Married filing separate phase-out: $0 - $10,000 Yes, 2019 contributions phase out between $122,000 - $137,000 for singles and $193,000 - $203,000 for married couples. Married filing separate phase-out: $0 - $10,000 |
| Tax Deduction: | No |
| IRS Penalties for Early Withdrawal: | None if:
|
| Required Distributions: | Only after death of the participant |
| Contribution Age Limit: | None |
Roth IRA Investment Options
- Savings Account - $100 minimum deposit or $25 with automated deposits
- Certificate Accounts - $100 minimum deposit or $25 with automated deposits, 6-month, 1-year and 2-year terms
Additional Roth IRA Information and Help
- Make a one-time contribution to your Roth IRA
- Set up automatic contributions to your Roth IRA
- Call us and ask to speak to one of our IRA Specialists
- Read the IRA Account Disclosure
- Compare IRAs
- Learn about Traditional IRA Accounts
- Learn about ESAs (Education Savings Accounts)
- Learn more about Roth IRAs
- Printable IRA and ESA brochures in PDF format
Traditional and Roth IRA Accounts are separately insured to $250,000 by the National Credit Union Administration, an agency of the United States Government. Coverdell Education Savings Accounts are insured under the same provisions as irrevocable trust accounts.