Roth Individual Retirement Account
Do something good for your future with a Heritage Oaks Bank ROTH IRA
A ROTH IRA from Heritage Oaks Bank is one of the best ways to realize tax-free distributions while supplementing your other retirement income sources. It's an option for individuals already saving for their retirement and desiring the advantages of tax-free earnings. Open or contribute to your Heritage Oaks Bank ROTH IRA before the tax deadline.
- For 2013, you can contribute up to a maximum of $5,500 (or up to $11,000 if married filing jointly with spousal IRA) per year
- At age 50 or older, you can contribute an additional $1,000 ($2,000 if married filing jointly with spousal IRA) per year
- All you need is an earned income equal to the amount you contribute and make less than the Modified Adjusted Gross Income limit
- ROTH IRA savings accounts are available for a low opening deposit of $100
- ROTH IRA CDs are available in various terms for an opening deposit of $1,000
- ROTH IRAs have a low $25 annual fee and $25 dollar transfer or roll over fee for IRA savings and IRA CD accounts
- ROTH IRAs are not subject to Required Minimum Distributions
What makes a ROTH IRA different from traditional IRAs?
A ROTH IRA differs in some significant ways from traditional IRAs. Both forms of the IRA are great ways to save for retirement, although each offers different advantages.
The biggest difference between the ROTH IRA and the traditional IRA is the way the United States Government treats the taxes. Contributions to traditional IRAs are tax deductible at the time of contribution; however, you must pay tax on your distributions in retirement. Contributions to Roth IRAs, on the other hand, are taxed now so that distributions in retirement are tax-free.* You basically decide whether or not you want to be taxed now or taxed later when choosing which IRA to contribute to.
Whether you choose a ROTH IRA, a traditional IRA, or both, investing in your retirement is one of the most important things you can do for your future.
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To learn more about our Roth Individual Retirement Account, visit a Financial Services Representative at any of our Central Coast locations, or call us at 805.369.5200.
We'll work to understand your short-and-long-term financial goals. Expect a brighter future. Expect more with Heritage Oaks Bank.
- *Each individual should consultant their tax professional for complete tax information including treatment of their IRAs.