Roth IRAs may be a good choice if you are at or below the Modified Adjusted Gross Income (MAGI) limits to make a contribution, if you are seeking tax-free distributions in retirement, want to avoid required minimum distributions (RMDs) beginning at age 70 ½, or feel you will be in the same or higher tax bracket at retirement.
Roth IRA Details
- Contributions to a Roth IRA are NOT tax deductible
- Account holders must have earned income to make a contribution
- The interest earned on a Roth IRA is tax free if certain requirements are met
- Account holders can have access to their principal at any time without an IRS penalty
- Individuals with a Roth IRA can continue to contribute to their IRA even after age 70 ½ if they have earned income
- Individuals with a Roth IRA are NOT required to take minimum distributions at age 70 ½
- Investments are made into a Certificate of Deposit
IRA 18 Month CD Account Quick Facts
Minimum Balance to Open | $1,000 |
Minimum Balance to Obtain APY* | $1,000 |
Interest Rate | 2.50%** |
APY* | 2.51%** |
Compound Periods Per Year | 2 |
Interest Paid | Maturity |
Transaction Limits | No deposits or withdrawals may be made after account creation. |
Monthly Fee | $0 |
Statement Frequency | This account does not include statements. |
*Annual Percentage Yield. Accurate as ofJanuary 6, 2023
**Variable rate. Rates may change after the account is opened.
Account Details
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Contributions to a Roth IRA are NOT tax deductible
-
Account holders must have earned income to make a contribution
-
The interest earned on a Roth IRA is tax free if certain requirements are met
-
Account holders can have access to their principal at any time without an IRS penalty
-
Individuals with a Roth IRA can continue to contribute to their IRA even after age 70 ½ if they have earned income
-
Individuals with a Roth IRA are NOT required to take minimum distributions at age 70 ½
-
Fees could reduce earnings on the account
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Investments are made into a Certificate of Deposit