What is a Roth IRA?
Starting In 1998, a new IRA known as the ROTH IRA became available. Contributions are taxed but all withdrawals, including earnings, are tax-free if the account has been open for five years and the account holder is 59 ½ or older.

Who is Eligible to Contribute to a ROTH IRA?
Every individual who has earned income or received alimony may contribute. Income from other sources such as investments or inheritance does not qualify. The accounts are available to couples with income of up to $150,000 and singles up to $95,000. Contributions are phased out between $150,000 and $160,000 for couples and $95,000 to $110,000 for singles.

I Am an Active Participant in an Employer Sponsored Retirement Plan, May I Contribute to a ROTH IRA?
The fact that you participate in an employer-sponsored retirement plan does not exclude you from making a non-deductible contribution to a ROTH IRA.

Are Interest and Dividend Earnings Tax Deferred?
All the earnings you accumulate in your Roth IRA remain tax sheltered and if they remain in the account for a period of five successive tax years they can be withdrawn tax-free. There are certain criteria that must be met to enjoy tax-free and penalty-free distributions. Consult your tax preparer.

How Much Can I Contribute to a ROTH IRA?
Each year you can contribute all or part of compensation up to $2,000 for individual tax-payers and $4,000 where both spouses have earned income (each spouse can contribute up to $2,000 each). Total yearly contributions that can be made by an individual to ALL IRAs (deductible, pre-act nondeductible and Roth IRAs) is $2,000 not counting rollover contributions.

This Credit Union is federally insured to $100,000 by the
National Credit Union Administration.

Equal Housing Lender: We do business in accordance with 
the Fair Housing Law and the Equal Credit Opportunity Act.

Baker's Federal Credit Union
Omaha, Nebraska