A Roth IRA is ideal if you want tax-free withdrawals in retirement and no mandatory distributions at age 73. Enjoy the flexibility of choosing any CD term of 5 years or less.
Roth IRA Benefits:
- Tax-Free Growth. Withdraw earnings tax-free after a 5-year holding period and one of the following events occurs:
- Attainment of age 59½
- The Roth IRA owner's death
- Disability of the Roth IRA owner
- Qualified first-time home buyer distributions
- No Required Withdrawals. No mandatory distributions at age 73.
- Flexible Contributions. Continue contributing as long as you have earned income within the income limits, even during retirement.
- No age limits. There are no age limits for contributions as long as the eligibility requirements are met.
Are You Eligible? Check the income limits and contribution guidelines for 2024.
In order to contribute to a Roth IRA, the contributor (or spouse if married and filing a joint return) must have earned income, equal or greater than, the contribution amount. If contributions are made to both a Roth and Traditional IRA, the maximum contribution to the Roth is reduced by the amount contributed to the Traditional IRA.
Modified Adjusted Gross Income (MAGI) cannot exceed the following limits:
Roth IRA Contribution MAGI Ranges
| Participant | 2023 |
|---|---|
| Single Individual: | Less than $138,000 - full contribution $138,000 - $153,000 - partial contribution More than $153,000 - no contribution |
| Married Individual filing joint income tax return: | Less than $218,000 - full contribution $218,000 - $228,000 - partial contribution More than $228,000 - no contribution |
| Married Individual filing a separate income tax return: | Less than $10,000 - partial contribution More than $10,000 - no contribution |
| Participant | 2024 |
|---|---|
| Single Individual: | Less than $146,000 - full contribution $146,000 - $161,000 - partial contribution More than $161,000 - no contribution |
| Married Individual filing joint income tax return: | Less than $218,000 - full contribution $230,000 - $240,000 - partial contribution More than $240,000 - no contribution |
| Married Individual filing a separate income tax return: | Less than $10,000 - partial contribution More than $10,000 - no contribution |
Contribution amounts and catch-up contribution amounts will increase annually as follows:
| Tax Year | Contribution Limit | Catch-Up Limit If Age 50 Or Older | Total Contribution Limit If Age 50 Or Older |
|---|---|---|---|
| 2023 | $6,500 | $1,000 | $7,500 |
| 2024 | $7,000 | $1,000 | $8,000 |
Premature withdrawals from Certificates of Deposit shall be subject to a penalty. For certificates with an original or renewal term of one year or less, or for the 14-month CD, the penalty shall be equal to 90 days interest at the contract rate, non-compounded. For certificates with an original or renewal term greater than one year, with the exception of the 14-month CD, the penalty shall be equal to 180 days interest at the contract rate, non-compounded. The penalty shall be assessed on the amount withdrawn unless such withdrawal should cause the balance to fall below the required minimum balance, in which case the penalty would be charged on the entire balance and the account would be closed.
Interest which has been credited to the account since the later date of account opening, renewal or interest rate endorsement may be withdrawn at any time without penalty. Withdrawals not later than 10 days after maturity or following the death or adjudication of incompetence of an Account Holder shall not be subject to penalty.
For Traditional Individual Retirement Accounts only (this excludes Roth IRAs) held under Capitol Federal's IRA Trust Agreement (except for Passbook or daily accounts), penalties shall be assessed on withdrawals (other than at maturity, including the ten day post-maturity grace period) until the individual attains 59½ years of age, at which time the IRA Account Holder may withdraw without penalty, subject to laws and regulations concerning distributions from an IRA account, which may result in tax or other penalty assessments by the Internal Revenue Service.
Traditional IRA
A Traditional IRA from Capitol Federal allows you to save for retirement while potentially reducing your tax bill. Choose any CD term of 4 years or less for your investment.
Why Choose a Traditional IRA?
- Tax-Deductible Contributions. Consult your tax advisor to see if you qualify.
- Tax-Deferred Growth. Earnings are not taxed until you withdraw them in retirement.
- No Withdrawals Until Age 73. Your funds can continue to grow tax-deferred.
Roth and Traditional IRAs – What’s the Difference?
Why You Should Consider a Retirement Plan in Your 20s
IRA Rollover - Secure Your Retirement
