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Roth IRA FAQ

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.

Roth IRA FAQ

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Learn the answers to the most frequently asked questions about Roth IRAs.

What Is a Roth IRA?

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.

How Much Can I Contribute to My Roth IRA?

Your contributions are subject to IRS limits that change annually.

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Can I Withdraw Money from My Roth IRA?

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.

Who Can Open a Roth IRA?

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.

Can I Open a Roth IRA if I Have Another Retirement Plan?

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).

Open a Roth IRA at Synchrony Bank

As one of the 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.

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Sources:

IRS: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits


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