Roth IRA

A Roth IRA is funded with after-tax dollars. While there are no current-year tax benefits, your contributions and earnings can grow tax-deferred, and can be withdrawn tax- and penalty-free after age 59½ if the account has been open for five years. A Roth IRA can be a good savings option for those who expect to be in a higher tax bracket in the future, making tax-free withdrawals even more advantageous.

Additional features include:

• There are no contribution age restrictions, nor do you have to take Required Minimum Distributions (RMDs)
• There are income limitations to open a Roth IRA, so not everyone will be eligible for this type of retirement account.
• The IRA must be open for at least five years prior to withdrawals being taken

Draw on our experience to find the right approach for pursuing your long-term goals. Contact an advisor with Park Financial Advisors to begin the conversation.

Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.