Roth IRAs

CDs and IRAs

Roth IRAs

Get long-term tax benefits and save for your future and your beneficiaries with a Roth IRA. Because you can hold this account through your lifetime and never take distributions, Roth IRAs offer legacy and estate-planning benefits.

Features

No mandatory distributions at any age.

Distributions are tax-free after five years* if over the age of 59½.

Qualified distributions may be tax-deductible.

Contributions are invested on after-tax dollars and are never tax-deductible.

Contributions may be made until the April 15** tax deadline.

Maximum Contribution

The maximum contribution depends on your modified adjusted gross income (MAGI) and your age.

2023 Maximum Contribution: $6,500 or 100% of earned income per tax year, whichever is less.

2023 Maximum Contribution for Roth IRA holders 50+: $7,500.

Contributions can be made at any age with taxable earned income.

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Financial planning can help you reach your retirement goals. At The First National Bank in Sioux Falls, our investment experts can help you to make the right choices about retirement accounts.

*Those younger than age 59½ can receive a maximum distribution of $10,000 for the purchase of a first home or older if they have met the five-year requirement.
**If the 15th falls on a weekend or holiday, the deadline is the next business day.

The above information is provided for educational purposes and is not intended as tax advice. Please consult a tax professional.