Roth IRAs are quickly becoming a favorite type of IRA in the retirement market because of the variety of benefits they can offer you later in retirement.
Key characteristics and benefits:
- Roth IRAs consist of post-taxed funds intended for your retirement.
- There are no tax deductions on contributions into a Roth IRA.
- However, Roth IRAs can give you a tax break later during withdrawals.
- Contributions to a Roth IRA must also abide by the IRA contribution guidelines and the limits for the year. These limits are posted on the IRS website.
- We strongly advise you to seek advice from a tax professional to determine your Roth IRA Contribution eligibility.
- The earnings (dividends) in your Roth IRA Savings and/or your Roth IRA Certificates also grow and may be tax-free when you withdraw.
- Earnings are not reported to the IRS.
- Deposits into a Roth IRA should already be taxed, so the principal amount of the Roth IRA cannot be subject to taxes or penalties again when withdrawn, as long as the Roth IRA owner abides by the Roth IRA and also the qualified distribution guidelines.
- Withdrawals from a Roth IRA can be tax-free, provided the distribution is a qualified one.
- There are no Required Minimum Distributions (RMDs) on Roth IRAs.
- There are currently no annual service fees on EECU IRAs.
- Another benefit of any EECU IRA type is that you have access to distribute your assets at any time.
- Withdrawing from other retirement plans often requires a life-changing event and can be more complicated.
- Please call us at 800-538-3328, email us at iradesk@myeecu.org, or visit your nearest EECU branch for assistance.
- Consider the possible tax consequences of a withdrawal.
Important Disclosure: This information is for educational purposes and does not constitute tax or legal advice. Tax laws are complex and subject to change. EECU recommends consulting with a qualified tax advisor to determine your eligibility and the best IRA strategy for your specific financial situation.