Roth IRA's allow only non-deductible contributions, but features tax-free withdrawals for certain distribution reasons, after a five-year holding period. Tax-free means free from Federal Income Tax.
- Eligibility depends on compensation and your modified adjusted gross income (MAGI).
- No age limit for making contributions.
- Earnings on your Roth IRA are non-taxable, with certain provisions.
- Contributions are not subject to taxation or the 10% premature-distribution penalty tax, when distributed.
- Assets held are not subject to age 70½ required minimum distributions.
For more information, please contact the Fowler State Bank Customer Service Department at 765-884-1200 or 800-439-3951.