Ford City, Pennsylvania

4 FAQ About Roth IRAs June 26, 2019

Ford City, Armstrong
4 FAQ About Roth IRAs, Ford City, Pennsylvania

Maintaining a financial lifestyle you’re comfortable with during your retirement requires planning and commitment. The Roth IRA is one popular savings tool for securing this kind of lifestyle. This retirement account has several tax benefits that can help maximize income during your golden years. Here are answers to some of the most frequently asked questions about this popular retirement account.

Top Questions About Roth IRAs

1. What is a Roth IRA?

A Roth IRA is a savings account designed to grow a retirement nest egg. You make contributions to it on an after-tax basis. Once inside the account, your money grows tax-free until you reach retirement age. Even after you retire, you don’t have to pay taxes on your Roth IRA distributions.

2. What are the advantages?

IRAsIn addition to the tax-free contributions and distributions mentioned above, you aren’t penalized for using the funds before retirement age. You won’t be assessed any taxes or penalties for early withdrawals. Roth IRA holders can also use their funds for any reason, and there are no required minimum distribution amounts.

3. Who can contribute to a Roth IRA?

Anyone can contribute to this type of retirement account, regardless of their age. However, you must regularly earn wages from a job or as an independent contractor. There are also IRS income limits on who is allowed to contribute. Since the limits may vary with each tax filing season, it’s best to speak to a financial adviser for personal guidance.

4. Is a Roth IRA or traditional IRA better for me?

The answer depends on the amount of income you earn, your tax bracket, and what your financial situation will be during retirement. Because no two individuals’ savings goals are alike and your personal money preferences are unique, a financial adviser can offer customized guidance on whether the Roth IRA or traditional IRA is best.



If boosting your retirement savings is your goal, Armstrong County Building & Loan Association can help you reach it. Based in Ford City, PA, the community lender has helped individuals by providing a variety of financial services since 1925. This includes Roth IRAs to grow your funds tax-free. To learn more about the account, call (724) 763-7137 to speak to a friendly representative. You can also get details online about the lender’s full suite of products and services.

Other Announcements, Events and Deals from Armstrong County Building & Loan Association
3 Tips for Saving Money in Your 20s, Ford City, Pennsylvania
Your 20s are an exciting time. This is when you explore career options and learn to manage money. However, it’s easy to make financial missteps if you aren’t planning ahead. By more
Debunking 3 Common Myths Regarding IRAs, Ford City, Pennsylvania
IRAs are essential elements of retirement planning. Unfortunately, many people fail to use IRAs to their full potential because of some commonly held misconceptions. By more
Can You Use an IRA to Purchase a Home?, Ford City, Pennsylvania
For many people, buying a house will be the largest financial investment they ever make. However, coming up with the funds for the down payment can be a challenge. Home shoppers may more
4 Steps to Buying a New Home, Ford City, Pennsylvania
As exciting as buying your first home may be, it’s also an enormous project with several critical steps. In addition to finding your dream home and securing a mortgage loan, you’ll more
3 Perks of Having a Safe Deposit Box, Ford City, Pennsylvania
Knowing your expensive jewelry and important documents are kept in a secure spot can offer peace of mind. Safe deposit boxes are designed to keep valuables protected from theft, more