Looking for a tax-free way to build your retirement portfolio outside of your company-sponsored 401k plan? A Roth IRA may be the answer for you.
With traditional retirement plans, your tax break comes upfront when you deposit money into your plan. Roth IRAs are different, in that contributions and accumulated earnings can be withdrawn tax-free at retirement.
If you expect your tax rate to increase over time, a Roth IRA may be right for you, as you will pay less taxes today than you would pay at retirement.
Am I Eligible For a Roth IRA?
In 2015, the maximum income to contribute to a Roth IRA was $131,000 for an individual (filing single) or $193,000 (filing jointly). Speak with a Landmark Bank Investments Team Member to see if a Roth IRA is smart for you and your family.
Roth IRA Benefits
There are several Roth IRA benefits to consider before opening an account with Landmark Bank:
- Earnings are invested tax-free for retirement. While contributions are made after-tax, a Roth IRA can be extremely beneficial if your career trajectory points to higher earnings in the future.
- No taxes on distributions after age 59.5 if an account has been open for 5+ years
- Tax-Free distributions can pass on to beneficiaries
- No lifetime Required Minimum Distributions (RMD) on your Roth IRA
Limits on Roth IRA Contributions
According to the IRS, the annual limits for contributing to a Roth IRA or traditional are $5,500, or $6,500 for those 50 or older.
Opening a Roth IRA at Landmark Bank
Thinking about opening a Roth IRA or learning the Roth IRA Benefits you could be taking advantage of? Landmark Bank’s experienced investment professionals in Missouri, Texas and Oklahoma are here to help you through the process of opening a Roth IRA and determine if a Roth IRA is right for you.
Contact us today to learn more!