Roth IRA

Planning Ahead? Let Civic Bank help you start saving now for the future with a Roth IRA.

Features

• Contributions are made with after-tax dollars
• Earnings are tax-free and penalty-free if you have participated in a Roth IRA for at least five years and you withdraw after the age of 59 1/2
• Contributions can also continue past the age of 70 1/2, if you are still earning income.

Eligibility Requirements

•  There is no minumum age to open, as long as individual has earned income and files a tax return
• Single individuals with a Modified Adjusted Gross Income of less than $105,000
• Married Couples with a Modified Adjusted Gross Income of less than $166,000
• Contribution Limits phase out for Modified Adjusted Gross Income between $105,000 and $120,000 for single individuals and between $166,000 and $176,000 for married couples filing jointly

Withdrawals

• Earnings are tax-free if you withdraw after the age 59 1/2 and you have had the account for at least five years
• No Required Minimum Distribution (RMD)

Maximum Annual Contributions Levels (for 2010 tax year)

• $5,000 for single individuals up to age 50
• $6,000 for individuals age 50 and over
• $10,000 - $12,000 for married couples filing jointly ($5,000 maximum for each joint filer up to age 50. $6,000 for each, age 50 and over)