Your search for answers about Roth IRAs (Individual Retirement Accounts) ends here. The financial experts at Synchrony Bank have compiled a guide for Roth IRAs. You’ll find simple, straightforward answers to the most frequently asked questions about this unique kind of retirement account that can become an integral part of your retirement savings.
Learn the answers to the most frequently asked questions about Roth IRAs.
A Roth IRA is a tax-advantaged way to save for retirement. Your contributions to a Roth IRA are taxed as part of your annual income, but you won’t pay any taxes on your earnings or withdrawals.
Your contributions are subject to IRS limits that change annually.
Yes, you can generally withdraw your contributions (but not your earnings) at any time after a five-year holding period. These withdrawals are tax-free.
You can begin to withdraw your earnings tax-free and penalty-free when you turn 59 ½. You may be able to withdraw some of your earnings earlier than 59 ½ under certain circumstances.
Anyone who earns an income can open a Roth IRA. There are no age restrictions. A Roth IRA is well-suited for people who begin their careers in a lower tax bracket than where they expect to be when they retire since they will not be taxed on their withdrawals.
Yes, you can contribute to a Roth IRA even if you or your spouse participates in another retirement plan. Your contributions may be limited, however, if your income exceeds a certain level (see above).
As the fifth largest savings bank in the nation, our banking representatives can help you save for retirement.
Learn more answers to frequently asked Roth IRA questions at Synchrony Bank by calling one of our financial representatives at 1-844-345-5789 today.
Synchrony Bank does not provide tax advice so be sure to contact your tax advisor or financial consultant before opening or contributing to an IRA.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.