Roth IRA

(Depending on IRA assets, a Roth IRA may or may NOT be FDIC insured.)

Mutual funds, stocks and bonds are not deposits or obligations of any bank; are not guaranteed by any bank; and are not insured or guaranteed by the FDIC, Federal Reserve Board or any other government agency. Investment in mutual funds, stocks or bonds involves risk, including possible loss of principal. Additional information is available from our personal bankers. Please contact us.

Roth contributions are non-deductible, and earnings accumulate TAX FREE.

  • Individuals may make non-deductible contributions to a ROTH IRA of 100% of earned income or a maximum total of $3,000.00 per year in 2003, whichever is less. See table below for current contribution limits.
  • Single filers with an Adjusted Gross Income (AGI) less than $95,000.00 and joint filers with an AGI less than $150,000.00 are eligible for the $2000.00 maximum contribution.
  • Distributions will not be included in income or receive the 10% Premature Distribution Penalty as long as the principal and earnings have remained in the IRA for at least 5 years from the first contribution date and the withdrawal is considered a "qualified distribution".

Economic Growth and Tax Relief Reconciliation Act of 2001 Traditional and Roth IRA Increased Contribution Limits Effective 2002

Contribution Year Contribution Limit Under Age 50 Contribution Limit Age 50 And Over
2001 $2,000.00 $2,000.00
2002 $3,000.00 $3,500.00
2003 $3,000.00 $3,500.00
2004 $3,000.00 $3,500.00
2005 $4,000.00 $4,500.00
2006 $4,000.00 $5,000.00
2007 $4,000.00 $5,000.00
2008 $5,000.00 $6,000.00
2009 COLA in $500.00 Increments COLA in $500.00 Increments