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Roth IRA 

If you’re looking for a smart way to supplement your retirement savings and enjoy the benefits of tax-free earnings in retirement, we offer Roth IRAs.
 

• Tax-free withdrawals in retirement unlike Traditional IRAs.

• No mandatory distributions at age 70 1/2.  

• You can withdraw contributions at any time without penalty.

• No age limit on contributions.


































Roth IRA

Traditional IRA

Ideal for Individuals looking to forgo tax-deductible contributions in exchange for tax-free distributions Individuals looking to take advantage of tax-deductible contributions and tax-deferred savings
Key Benefits

Withdrawals in retirement may be tax-free

Earnings on contributions may be tax-free

No mandatory age for taking distributions

Conversions allowed from IRAs and eligible employer-sponsored plan rollovers

Tax-deductible contributions

Tax-deferred growth

Maximum annual contribution 1

Individuals may contribute the lesser of:
- Up to $5,500
- Up to 100% of compensation
(2013 limit)

Catch-up provision:  Individuals age 50+ are allowed to contribute an additional $1,000
per year

No Roth conversion maximum

Individuals may contribute the lesser of:
- Up to $5,500
- Up to 100% of compensation
(2013 limit)

Catch-up provision:  Individuals age 50+ are allowed to contribute an additional $1,000
per year

Eligibility requirements 2

No age limitation


Annual contributions allowed based on following 2013 income limits:

-  For Individuals, annual contribution phase out begins at $112,000 until $127,000

-  For married couples, filing jointly, contribution phase out begins at $178,000 until $188,000

No income limit for conversions

Anyone under 70 ½


Click here if you ARE covered by a Retirement Plan at work


Click here if you are NOT covered by a Retirement Plan at work

Contribution deadline By individual’s tax-filing deadline, excluding extensions - generally April 15th By individual’s tax-filing deadline, excluding extensions - generally April 15th
Withdrawals 3 Contributions may be withdrawn at any time without penalty

Earnings may be distributed tax-free under the following conditions:

- Met five taxable year holding period; AND

- Distribution is due to attainment of age 59 ½, death, disability, and first-time home purchase (maximum $10,000)
All distributions are typically subject to federal and state taxes

For distributions prior to age 59 ½, you may be subject to an IRS 10% early withdrawal penalty tax (some exceptions apply)
Age for required distributions No required distributions By April 1 of the year after you turn 70 ½
1. Must have earned income; also subject to income / age restrictions.

2. Other conditions may apply.

3. Early withdrawal fees on bank CD(s) may apply (some exceptions apply).

This information is for information purposes only. Please be advised nothing contained herein is meant to be legal or tax advice.  Further, we strongly encourage you to seek qualified legal and tax advice regarding your specific situation.

To learn more about how a Roth IRA can help you, schedule a meeting today with one of our experienced Retirement Specialists.  Call 1-800-EASTERN (327-8376), then select option 2, option 2 from the menu of banking choices.