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Roth IRAs Do More

More Than Just a Retirement Investment

Most people think of Roth IRAs as a great retirement investment. They are, because earnings are tax-free.* But you can also use Roth IRAs for other purposes.

Help pay for your first home.

If you’ve had your Roth IRA for at least five years, you can withdraw $10,000 ($20,000 for couples) tax-free and penalty-free to help pay for your first home.

Encourage your kids to save.

If you have children with part-time jobs, they can open a Roth IRA.

Save for college.

Withdrawals used to pay for qualifying educational expenses are penalty-free, although not tax-free, if taken before age 59 1/2. (After age 59 1/2, these withdrawals are also tax-free.)

Provide for beneficiaries.

You can bequeath your Roth IRA funds to your beneficiaries, who can withdraw money from the account tax-free over a number of years.

Retirement planning.

You don’t have to worry about being pushed into a higher tax bracket due to Roth IRA distributions—these withdrawals are tax-free. And, unlike Traditional IRAs, there is no minimum distribution required at age 70 1/2. With earned income, you can keep investing in a Roth IRA at any age.

To determine whether a Traditional IRA, Roth IRA or other investment suits your financial goals, contact our UW Credit Union Financial Services Center at 608-232-5000 or 800-533-6773, ext. 2107 to meet with one of our experienced Financial Network representatives.

*Roth IRA earnings are free from federal taxes. However, depending on state law, distributions may be subject to state taxes. Consult tax advisor for details.

Investments are not deposits, not insured by any federal government agency or NCUSIF, or guaranteed by UW Credit Union. Investments may lose value.
Securities offered through Financial Network Investment Corporation, member SIPC. Financial Network and UW Credit Union are separate companies.