Roth IRAs Offer Tax-Free Money in Retirement


For many people, the advantages of a Roth IRA make it the best choice for retirement savings. Depending on your eligibility, income and other factors, it could be the ideal retirement account for you.

Tax-free income

With a Roth IRA, you pay taxes when you contribute money, not when you withdraw it. That makes it a good investment when the market is down, when your income is low, or when you expect your taxes to increase in the future for any reason. It’s also a good way to leave income tax-free inheritances.*

Other advantages:

  • Early withdrawals. Hold the account for five years, and you’ll be able to begin taking distributions as young as 59 ½ without taxes or penalties.
  • No mandatory withdrawals. You can keep your account balance growing as long as you want to. (Traditional IRAs require withdrawals at 70½.)
  • Continued contributions. Within income limits, you may continue to work and contribute even after retirement.
    (Traditional IRAs prohibit contributions after age 70½.)


If your income is high, you might not be eligible for a Roth IRA. For example, the income limit is $183,000 for married couples filing jointly. If your income is low, you can’t contribute more than you have earned. For example, the current maximum annual contribution is $5,500 for workers under age 50, but if you only earned $3,000, that amount is the cap on your contribution.


Conversion from a traditional IRA is easy. You may also be able to transfer funds from 401(k) or 403(b) accounts depending on your plan, your age and your income.

* If estate is greater than $5 million there may be federal inheritance/estate tax.

Stop by your local Horizon Bank or call us toll-free on 888-873-2640 to see how an Investment Advisory Account can grow your wealth.