WHAT IS A ROTH IRA?
Roth Individual Retirement Accounts (Roth IRAs) are a powerful retirement savings tool. Counter to Traditional IRAs, Roth IRAs have a tax advantage that allow you to grow your retirement savings tax-free and withdraw the funds tax and penalty-free inside certain parameters.
As part of our planning process, we can help you decide which retirement account fits your financial goals. We’ll work with you to help manage and fund your accounts.
DO I QUALIFY FOR A ROTH IRA?
In 2022, you can open and fund a Roth IRA if your earned income is under $129,000 if you are filing single or under $204,000 if your are married filing jointly.
You can open and fund a Roth IRA even if you are covered by a retirement plan through your employer. Contributions to a Roth IRA are made with after-tax dollars so your contributions are not tax deductible.
HOW WILL MY ROTH IRA AFFECT MY TAXES?
This is where the Traditional IRA and Roth IRA are different. Roth IRA contributions are made with after-tax dollars as payroll and income taxes have already been paid for from your gross earnings. Your account grow tax-free and you pay no taxes on those dollars when you withdraw them after age 59.
RULES ON WITHDRAWALS
Withdrawals are only tax-free if it’s been 5 years since your first contribution and you are 59 ½.
You can withdraw your contributions (but not earnings) whenever you like penalty-free.
If you withdraw earnings before age 59 ½ you will be subject to paying taxes and penalties.
You can sometimes withdraw funds before 59 ½ for certain situations like buying your first home or paying off education or healthcare expenses.
RMDs are not required for Roth IRAs.
Ready to open an account?
Head to the secure website below. Tell us a few things about you and we’ll start optimizing your portfolio. Scroll down for a step by step walk through.
STEP 1
Input your retirement status. Click Continue.
STEP 2
Input your age. Click Continue.
STEP 3
Input your annual income. If retired, calculate your Social Security. Click Continue.
STEP 4
Select the “Retirement” goal in the middle.
STEP 5
Select “Roth IRA”. Click Continue
STEP 6
Review your recommended portfolio. Click Continue. If you’re not sure this is the right portfolio for you, schedule an investing call with one of our member advisors.
STEP 7
Now, create an account using your email address. Please have your SSN handy.
1. Login to your Account Here
2. Click “Deposit” in the top right corner to start this process.
3. Click on Your ROTH IRA
4. Connect a bank account. Note this will ask you for your Login Credentials.
5. Select Frequency and Amount
6. Review and Submit
LOOKING FOR ADDITIONAL INVESTMENT OPTIONS?
If you are interested in only investing in socially responsible portfolios or have other questions, schedule an investing call with a member advisor below.
Investment Advisory Services are offered through HUMAN INVESTING, LLC. in association with RIVERMARK COMMUNITY CREDIT UNION. The investment services and products are NOT FEDERALLY INSURED, NOT OBLIGATIONS OF, AND NOT GUARANTEED BY THE CREDIT UNION OR ANY AFFILIATED ENTITY, AND SUBJECT TO NORMAL INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.