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Roth IRAs
Tax-free Earnings
Roth IRAs offer an attractive alternative for retirement investors.
Contributions to a Roth are NOT deductible; however, your earnings are tax-free. So, with
a Roth IRA, you forgo current tax deductions to provide yourself with a tax-free income in retirement.
Investors may contribute to both Traditional and Roth IRAs; however, the total
contribution amount for both accounts combined cannot exceed the maximum annual contribution limit.
Withdrawals
Roth IRAs give you greater access to your investments. Withdrawals are tax- and penalty-free
if the account has been in existence for at least five years, and:
- You are age 59½ or older, or
- You use the money to purchase a first home, or
- You use the money to pay for higher education expenses
There are additional circumstances in which funds from a Roth IRA can be withdrawn without
penalty, even if the account has been in existence for less than five years, including
death, disability, medical expenses, or a series of substantially equal periodic payments.
Investing in an Armada No Annual Fee IRA is easy. You can order an IRA kit, download a
Roth IRA Application
and return it to us, or you can invest online, right now.
  
Conversion to a Roth IRA
If you’re eligible for a Roth IRA, and decide that one would be suitable for you, you can convert
your Traditional IRA into a Roth IRA. The Roth IRA provides you with tax-free earnings and tax-free
withdrawals. In addition, after a five-year holding period, if you are age 59½ or older, you
can take money out of your Roth IRA without income tax or tax penalty. However, if you convert your
employer-sponsored plan into a Roth IRA, you will owe current income taxes on the amount of the rollover.
Use our Roth IRA Educators to help determine whether this is a good alternative for you. You may also
want to consult your tax adviser before making this decision.
If you have already received a payout from an IRA or employer-sponsored retirement plan, you can
roll those assets into a Rollover IRA within 60 days and avoid the IRS’ 10% early withdrawal penalty.
Investing in an Armada No Annual Fee IRA is easy. You can order an IRA kit, download a
Roth IRA Application
and return it to us, or you can invest online, right now.
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