Why Contribute to a Roth IRA?

Thinking about opening or contributing to a Roth IRA? Learn more about the benefits of this type of retirement account and if you may be eligible to contribute.

The key benefits of Roth IRAs include:

All distributions from the account can be tax-free – Although contributions to a Roth IRA are not tax-deductible, earnings grow free of taxes. When you reach age 59 1/2, if the Roth IRA has been in place for at least five years, any withdrawal is tax-free. This feature can be attractive––particularly for investors who anticipate having a higher marginal income tax rate than they do at the time of contribution.

No required minimum distributions – While distributions from a traditional IRA must begin upon reaching age 72, there are no similar requirements for a Roth IRA.

No age limit on contributions – You can continue contributing to a Roth IRA as long as you have earned income.

Know your limits – Eligibility to contribute to a Roth IRA is based on an individual’s modified adjusted growth income (AGI) and annual contribution limits are determined each calendar year. For 2020, the annual limit is $6,000 and those over age 50 can contribute an additional $1,000.

The professionals at TFCU Financial Advisors can answer questions you may have about the features and benefits of IRAs and help determine which type may be appropriate for addressing your retirement needs.

TFCU Financial Advisors
6501 Tinker Diagonal, MWC
(405) 737-0006
TFCUFinancialAdvisors.org

Securities are offered through RAYMOND JAMES FINANCIAL SERVICES, INC., Member FINRA/SIPC, and are not insured by NCUA or insured by any other government agency. Funds are NOT GUARANTEED nor are they deposits or obligations of the credit union or any affiliated entity of the credit union, and are subject to risk, including the possible loss of principal. Tinker Federal Credit Union, Tinker Financial Services, LLC and TFCU Financial Advisors* are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc., a non-affiliated third party provider to Tinker Financial Services, LLC and Tinker Federal Credit Union. All investments and information are intended for U.S. residents only. *TFCU Financial Advisors is a registered trademark and ‘dba’ of Tinker Financial Services, LLC. Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While familiar with the tax provisions of the issues presented herein, Raymond James financial advisors are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.