Roth IRA

Roth IRA Withdrawal Benefits

A Roth IRA is a beneficial way to save money for your retirement, which many National Bank Of Kansas City customers choose because of the tax-free withdrawal. Contributions to a Roth IRA are not tax-deductable, but when you are ready to withdrawal funds, it may be completely tax-free assuming the following criteria are met*:

  • You hold the Roth IRA for five years
  • You become disabled
  • You reach the age of 59-1/2
  • The funds will be used toward your first home purchase
  • The beneficiary of your estate requests the funds

At any time after opening your National Bank Of Kansas City Roth IRA account, you may withdrawal your contributions completely tax free. Your earnings may also be withdrawn, but there could be a tax penalty.*

Roth IRA Maximum Contribution

You may make a maximum annual contribution of $5,000, as long as you make at least $5000 annually. If your income is less than $5000, you can contribute your entire salary to a Roth IRA. If you file jointly on a tax return with a spouse, then your spouse may make contributions on your behalf as long as he or she meets the income requirements. If you are older than 50, then the maximum annual contribution to a Roth IRA increases to $6,000.

Roth IRA Rollover

In some instances, it makes financial sense to roll over funds into a National Bank Of Kansas City Roth IRA.

  • Traditional IRA to Roth IRA – If you prefer to pay taxes now instead of later, then it may be worth rolling funds from your Traditional IRA to your Roth IRA. You will be responsible to pay income tax on that distribution, but you will not pay the 10% premature distribution excise tax even if you are younger than 59-1/2.
  • Roth IRA and Traditional IRA Distribution – If a distribution is made from an existing IRA account, you may roll those funds into a Roth IRA within 60 days of the distribution. You are only allowed one such rollover within 12 months.
  • 401(k) or 403(b) – If your employment situation changes or if you prefer the tax benefits of a Roth IRA, then you may rollover funds from a 401(k) and a 403(b).

See our Roth IRA rates or read our Roth IRA Guide to learn more.

*Consult with your tax advisor. Certain requirements must be met to receive tax savings.