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Roth IRA

Roth IRA 

  • Contributions to a Roth IRA are after tax contributions, therefore distributions are not subject to federal income tax. The earnings are generally tax free.
  • There is no maximum age for making Roth IRA contributions.
  • You are not required to take distributions from a Roth IRA during your lifetime, but there may be specific death distribution rules that apply to your beneficiaries.
  • If the withdrawal is a qualified distribution*, it is not subject to the IRS early distribution penalty.

*Qualified Distribution – A withdrawal is a qualified distribution if:

  • Paid to you after you attain age 59 ½.
  • Must be invested at least five years. (Roth IRA)
  • Must be paid after a five-taxable year period that begins with the earlier of:
    • The first taxable year for which you made a Roth IRA contribution or the first taxable year in which you converted from traditional to Roth.
    • Paid to you when you are disabled.
    • Paid to you for a qualifying home purchase.
    • Paid to your beneficiary after your death.

If a withdrawal from a Roth IRA is a qualified distribution, it is NOT subject to federal income tax. A qualified distribution is also exempt from the IRS early distribution penalty.

A distribution that is not a qualified distribution may be taxable and may be subject to the IRS early distribution penalty. Confer with your trusted tax preparation specialist for more specific guidance.

CONTACT

168 E Fairmount Ave
Lakewood, NY 14750

(716) 665-7000
HOURS

Open today · 9:00 am – 5:30 pm

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OUR MISSION STATEMENT

Southern Chautauqua Federal Credit Union is committed to providing its members with the professional financial services they have come to expect. It will use its resources wisely and be held accountable to its members.