Tax-Free Roth IRA Distribution

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The earlier you start the more you can save. With a Roth IRA, you'll pay taxes as you contribute to your retirement account so during retirement you'll be able to withdraw tax-free.^1,²

More on Roth IRAs:

Unlike a traditional IRA, a Roth IRA distribution is tax-free if you’ve had the account open at least five years, and reached the age of 59½, become disabled or died.

There is no age limit to make contributions to a Roth IRA, provided you have working income to make a contribution. Unemployment, pension income, social security do not qualify.

Roth IRAs are not subject to the traditional IRA rules for required minimum distributions at age 72.

Elements Of A Roth IRA Include:

The ability to make non-deductible contributions of up to $6,500 for tax year 2023 ($7,500 for individuals age 50 and older).

Qualified distributions are tax-free and IRS penalty-free for qualifying first-time homebuyers and individuals over age 59½.

You are not required to take distributions from your Roth IRA during your lifetime.

After the death of the IRA holder, specific death distribution rules apply.

Funds from a Traditional IRA can be converted or rolled over to a Roth IRA without paying IRS 10% penalty. The amount withdrawn from the Traditional IRA for conversion or rollover to Roth IRA is treated taxable income.

A distribution is qualified if it is paid after five years from your first Roth IRA contribution or conversion.

And it is paid:

After attaining age 59½
Due to disability
Due to death
First home purchase

Contact Columbia Bank to discuss the benefits of setting up a Roth IRA with one of our representatives. We'll help you grow your nest egg while you plan for a financially successful future.

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[1] See our schedule of fees for additional consumer account information. Early termination fee and contributions in excess of IRS limits subject to IRS penalties.

[2] Consult your tax advisor.

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