Retirement Plans

Traditional IRA | Roth IRA | Rollover IRA | 401(k) | 403(b)

Roth IRA

A Roth IRA (Individual Retirement Account) is a great way to save money to supplement your retirement. Created by the Taxpayer Relief Act of 1997 (TRA-97), the Roth IRA represents an extremely attractive retirement savings opportunity for many individuals.

Contribution increases that stem from the Economic Growth and Tax Relief Reconciliation Act of 2001 make a Roth IRA even more attractive.

A Roth IRA differs from a traditional IRA in that the assets grow federally tax free. That means you'll never have to pay federal income taxes on your earnings. The trade off is that contributions are never tax deductible.

Tax Advantages
Depending on your personal situation, a Roth IRAs may offer certain benefits that can help you now (and later). The biggest tax benefit of a Roth is that the earnings in the account grow free of federal (and in most cases state) income tax.

Contributions
Contributions can be made until April 15, 2006 for the 2005 tax year. Roth IRAs are available to most investors (up to age 70½) with earned income at least equal to the amount contributed. You can contribute to a Roth IRA even if you contribute to a traditional IRA1, SEP-IRA, or other employer-sponsored retirement program.

A Roth IRA offers the flexibility to continue making contributions after reaching age 70½ and unlike a traditional IRA, a Roth does not require investors to take minimum distributions after age 70½.