Tax-free growth potential

Roth IRAs may be a good choice, if you are seeking tax-free withdrawals in retirement, want to avoid required minimum distributions beginning at age 72, or feel you will be in the same or a higher tax bracket in retirement. Roth IRAs may be deposited in any CD term of 5 years or less. See rates here.

Benefits of a Roth IRA:

• Flexibility: Roth IRAs allow for tax-free distributions (including interest earnings) 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 mandatory withdrawals: There are no required minimum distributions that must begin at age 72, as is the case with Traditional IRAs
• Saving during retirement: You can make contributions to a Roth if you continue to work in retirement, as long as you stay within the income limits. 
• No age limits: There are no age limits for contributions as long as the eligibility requirements are met

Are you eligible?

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	2022
Single Individual:	Less than $129,000 – full contribution $129,000 - $144,000 – partial contribution More than $144,000 – no contribution
Married Individual filing joint income tax return:	Less than $204,000 – full contribution $204,000 - $214,000 – partial contribution More than $214,000 – no contribution
Married Individual filing a separate income tax return:	Less than $10,000 – partial contribution More than $10,000 – no contribution

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

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
2022	$6,000	$1,000	$7,000
2023	$6,500	$1,000	$7,500

Read Important Information About Earnings and Penalties.