Roth IRA
Contribute after tax now and take qualified withdrawals tax-free in retirement.
About the Roth IRA
With a Roth IRA you contribute money you have already paid tax on. Earnings grow tax-free, and qualified withdrawals in retirement are tax-free too, provided you meet the requirements the IRS sets. It suits people who expect to be in a higher tax bracket later.
What You Should Know
After-Tax Contributions
You contribute money you have already paid tax on.
Tax-Free Growth
Earnings grow tax-free.
Tax-Free Qualified Withdrawals
Qualified withdrawals in retirement are tax-free if IRS requirements are met.
Consider Future Tax Rates
A Roth IRA may be beneficial if you expect to be in a higher tax bracket in retirement.
Limits and Thresholds Apply
The IRS sets an annual contribution limit and income thresholds, both changing yearly.
Ask Your Tax Advisor
Whether you are eligible to contribute depends on your income.
What You Will Need
- Waypoint membership
- Earned income, where the IRS requires it
- Your own tax advisor
- No minimum opening deposit is stated
Common Questions
The IRS sets an annual limit and it changes each year. Check current IRS guidance or ask your tax advisor.
Yes. The IRS sets income thresholds that affect whether and how much you can contribute, and they change annually.
Contributions can be reached, but fees apply before age 59 1/2: a $50 termination fee if the account is closed, and a 30-day dividend penalty on a withdrawal. Ask your own tax advisor about the tax treatment.
Not sure which fits? Ask a Waypoint Credit Union representative
A Waypoint Credit Union representative will compare the options against what you are actually trying to do, including the ones we do not advertise heavily. Book a time at any Waypoint branch.
Important Disclosures
Federally insured by NCUA.
Waypoint does not provide tax advice. Contribution limits, income thresholds, deduction eligibility and required minimum distribution ages are set by the IRS and change from year to year. See current IRS guidance and consult your own tax advisor about your situation.