Have You Considered a Roth IRA?
The Roth IRA retirement vehicle had a lot of publicity when it was first introduced several years ago and we would like to
remind you of the possible advantages of a Roth IRA. The rules governing conversion from a traditional IRA to a Roth IRA
are complex. If you are considering a conversion from a Traditional IRA, your should consult with your financial advisor,
as there are tax consequences.
A Roth IRA has distinct benefits; yet is not for everyone. Some of the benefits are:
- If you have held your Roth IRA
for five years and you have reached age 59-1/2, all withdrawals are tax-free;
- You can always get back your
principal tax free and with no IRS penalty for any reason;
- Income limits for eligibility
for making annual contributions are more liberal than for the Traditional IRA; and
- You are not forced to take
distributions (or stop making contributions) at age 70-1/2.
This means your money can potentially grow tax-free over a longer period of time. There are also qualified distributions
that make this investment appealing, as long as you meet the required holding period.
If you have questions or want to set up your Roth or Traditional IRA today, call one of our Personal Bankers in Sauk City
at (608) 643-6300, or Lodi at (608) 592-7788.
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