Roth IRA

Features

• Available to individuals with earned income for the specific purpose of providing funds for and reducing the tax burden during retirement years
• Required minimum varies according to term and interest rate desired
• Contributions (deposits) are not tax deductible and not reported as income when withdrawn
• Interest is compounded daily for terms of 18 months; interest is compounded annually for terms of 19 through 60 months
• No minimum distribution amount is required at age 70-1/2
• Distribution prior to age 59-1/2 is subject to substantial penalty for early withdrawal and may be subject to 10% Internal Revenue Service penalty
• Qualified distributions including earned interest are tax free
• No maintenance fee
• The Roth Individual Retirement Account, along with other self-directed retirement accounts under the same name at the same institution, is insured up to $250,000 by the Federal Deposit Insurance Corporation