Roth IRAs

Save for retirement with the tax-free Roth IRA

A Roth IRA is an key retirement account that allows you to build savings today for your future retirement. When you reach retirement age, and meet certain criteria, you will be able to take money from your Roth IRA and pay no tax on any earnings. Roth IRAs may be a key pool of assets, along with your workplace plan, Social Security, pension and part-time work wages that will help you have a comfortable retirement.

And, unique to Roth IRAs is the ability to keep access to your contributions if you find you need to tap into your retirement savings before reaching retirement.

What is a Roth IRA?

A Roth IRA is a tax-advantaged type of account specifically designed to help you save for retirement. If your modified adjusted gross income qualifies you to for a Roth IRA, you will make contributions with after-tax dollars. Then, when you reach age 59 1/2 and meet the required 5-year aging date, you will be able to withdraw any earnings that have accumulated completely tax-free.

Is a Roth IRA right for you this year?

Consider making your annual IRA contribution to a Roth IRA if:

  • Your income level makes you eligible to contribute
  • You would like to make tax-free withdrawals at retirement
  • You have earned income after age 70½ and wish to continue to save for retirement
  • You would like to avoid Required Minimum Distributions once you reach age 70½
  • You may need access to your contributions before retirement and can avoid early withdrawal penalites

The benefits of a Roth IRA

Like Traditional IRAs, Roth IRAs offer tax-free accumulation of earnings. However, you can withdraw your regular contributions (not account earnings) anytime without taxes or penalties – a key difference from Traditional IRAs. You may also make tax-free withdrawals of qualified earnings. Although it's best to stay invested, this approach makes funds immediately available to you when you need them. There are no required minimum distributions (RMDs) so you do not need to make mandatory withdrawals beginning at age 70½.

Next Steps:

Explore additional IRA topics through the menu on the left. Or contact your financial advisor to set up the type of IRA that matches your needs.

  1. Check your IRA eligibility and deduction situation for this year
  2. Compare Traditional and Roth IRA options
  3. Print out the Roth IRA application, fill in your sections completely, then take to your financial advisor to finish his sections
  4. Meet with your financial advisor to discuss your IRA asset allocation and investment options, including a variety of mutual funds from Evergreen Investments
  5. Make your check payable to Evergreen Investments

A financial advisor can also help you determine what securities - such as Evergreen mutual funds - that may be appropriate in your IRA account based on your age and retirement income requirements.

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