IMPORTANT NOTE: See the section Roth IRA Conversions to learn about Roth IRA conversions that may be available to you even if you do not meet the criteria for a Roth IRA.
IRAs (Individual Retirement Accounts) are probably the most widely recognized tax-advantaged plans. These simple to establish accounts allow tax-deferred accumulation until distribution. The Roth IRA allows tax-free accumulation and withdrawals for those eligible to establish the account. You can establish an IRA whether or not you are covered by any other retirement plan.
The Roth IRA allows you to save money on a tax-free basis, provided you meet the eligibility requirements and the holding period rules.
The Roth IRA allows for non-deductible contributions up to $6,000 in 2020 (Same as 2019), no matter what your age (provided you have earned income) and presents an opportunity to receive tax-free income when the funds are withdrawn. If you are age 50 or older, you can contribute a total of $7,000 to a Roth IRA.
The Roth contribution limit is also reduced for amounts contributed to a traditional IRA.
Tax-free, penalty-free distributions of appreciation or earnings may be made from a Roth IRA if held for at least five years and if made on or after age 59½, because of death or disability, or for "first-time homebuyers" subject to a $10,000 lifetime limit.
SUGGESTION: Contributions (not appreciation or earnings) to a Roth IRA can be withdrawn at any time, tax-free and penalty free.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC. Insurance products are offered through LPL or its licensed affiliates. Premier America Credit Union and Premier America Investment & Retirement Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Premier America Investment & Retirement Services, and may also be employees of Premier America Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of Premier America Credit Union or Premier America Investment & Retirement Services. CA Insurance License #0759204, TX Insurance License#1643255.
Securities and insurance offered through LPL or its affiliates are: