The Roth IRA is a tax-free way to save for retirement. With a Roth IRA you can:
Withdraw your contributions tax-free and penalty-free at anytime;
Annual contributions of $5,000
can be made or 100 percent of your earned income, whichever is less;
Withdraw your distributions at retirement tax-free; distributions are not added to your earned income at tax time;
Avoid filing taxes on the dividends earned every year;
Make tax-free* withdrawals for the purchase of your first home, higher education, certain medical expenses and certain other uses;
Let your savings grow as long as you like, there's no minimum distribution at
age 70 ½;
Convert any existing IRA into a Roth IRA
You can have both a Roth IRA and a Traditional IRA under your member number at FAIRWINDS.
View and Print Roth IRA Forms
Other types of IRA accounts
IRA comparison chart
Coverdell Education Savings Accounts
Traditional IRA - Deductible
* Withdrawals from a Roth IRA after five years are not subject to income tax or the 10 percent premature penalty if the individual is at least 59 1/2, dies, is disabled, or uses up to $10,000 of the money for first-time purchase of a house. Withdrawals after five years, but before age 59 1/2 for college expenses are not subject to a 10 percent penalty tax but are taxed at ordinary rates. Withdrawals of contributions are not subject to income tax or a 10 percent early withdrawal penalty. Withdrawals of earnings before five years are subject to income tax and possibly the 10 percent penalty tax.
Taxable distributions are not subject to the 10 percent early withdrawal penalty if the individual is 591/2, deceased, disabled, taking equal periodic payments over his/her life expectancy for at least five years or until age 59 1/2, whichever comes later, or for college expenses, first-time home purchase up to $10,000, certain medical expenses and certain other uses.
