Roth IRA

To be eligible to participate in a Roth IRA, you must:

  • Earn income in the year that you make a contribution
  • For tax year 2015, have a modified adjusted gross income less than $116,000 if you’re a single taxpayer, or less than $183,000 if you’re married and filing jointly

Eligible Income

  • Wages
  • Salaries
  • Bonuses
  • Tips
  • Professional fees
  • Taxable alimony
  • Commissions
  • Self-employment income

Ineligible Income

  • Interest income
  • Pension or retirement income
  • Income from rental property
  • Deferred compensation
  • Foreign earned income
  • Annuity income
  • Dividend income
  • Any income not included in gross for federal tax purposes

Contributions

  • Individuals below age 50 may contribute $5,500 per year or 100% of eligible compensation, whichever is less.
  • Individuals age 50 and older may contribute $6,500 or 100% of eligible compensation, whichever is less.
  • Your contributions are not tax deductible.
  • Contributions can be made up to each year’s federal income tax return filing deadline, usually April 15.

Withdrawals

  • Contributions can be withdrawn tax-free and penalty-free at any time.
  • If you withdraw any earnings on the account while you are under the age of 59½, there will be a 10% early-withdrawal penalty in addition to federal and state income taxes.
  • If you are 59½ or older and your account has been open for five years, all withdrawals are penalty-free and tax-free.
  • There is no minimum required distribution during the lifetime of the original owner of a Roth IRA.

A variety of investment options are available for your Traditional IRA including:

  • First Citizens Bank1
    • FDIC insured CDs
    • FDIC insured money market accounts
  • First Citizens Investor Services2
    • Mutual funds
    • Stocks
    • Bonds
    • Annuities
    • Exchange Traded Funds (ETFs)
  • First Citizens Wealth Management2
    • Customized Asset Management Solution

A First Citizens Client Advisor will be happy to discuss options to create an investment strategy that will help you align your retirement savings goals.