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Roth Individual Retirement Accounts

Traditional IRAs | Roth IRAs | Coverdell

The Roth IRA is a non-deductible IRA that offers tax-deferred earnings. Distributions from a Roth IRA, held for at least five years, are tax free if used for a qualified purpose.

Tax-Free Distributions

Traditional IRAs only allow tax deferral, the government collects tax at the time of distribution. Distributions from a Roth IRA are tax free if used for a qualified purpose.*

Qualified Distributions

Tax free distributions include: higher education; buying a first home (up to $10,000); age 59½; death; and disability. In order to qualify, the five year holding period requirement must also be met.

Account Types

To fit your needs, you can open a Roth IRA Savings or Certificate Account.

Contribution Limits (Roth)

Year Contribution Limit
2020 $6,000
2019 $6,000

Catch Up Contributions

Individuals who turn age 50 and older can make a catch-up contribution of $1,000 per tax year in addition to regular contributions. This catch-up contribution may also be made to an IRA for a non-working spouse.

Eligibility

Roth IRAs are available to married couples with incomes below $206,000 for 2020 and single filers with incomes below $139,000 for 2020. In addition, individuals must have earned income to be eligible. The age 70½ requirements do not apply to Roth IRAs.

Rollovers From Traditional IRAs

Traditional IRAs may be rolled into Roth IRAs. This allows depositors to gain the advantage of tax-free distributions in the future.

Visit the branch nearest you, or call (631) 698-7000 ext. 6780.

*Consult your tax advisor.