Northwest Financial LLC

ROTH IRA

What is a Roth IRA?

A Roth IRA is similar to a Traditional IRA, but contributions are not deductible when the funds are contributed. Your earnings grow tax-free and remain tax-free upon distribution provided that you've held the account for 5 years and are at least age 59 1/2 upon withdrawal. Withdrawals prior to age 59 1/2 will be subject to 10% IRS penalty.

Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, qualified distributions are tax free. Contributions can be made to your Roth IRA after you reach age 701/2, and you can leave amounts in your Roth IRA for as long as you live.

To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. Neither a SEP-IRA nor a Simple IRA can be designated as a Roth IRA.

Can I Contribute to a Roth IRA?

Generally, you can contribute to a Roth IRA if you have taxable compensation, and you meet the modified adjusted gross income guidelines.

Access to securities and insurance products provided by Northwest Financial Group, a registered broker/dealer, member FINRA/SIPC. Northwest Financial Group is a subsidiary of Northwest Financial LLC, a wholly owned subsidiary of Northwest Federal Credit Union. Securities and insurance products are offered through LPL Financial and its affiliates, member FINRA/SIPC. LPL Financial has contracted Northwest Financial Group to refer securities and insurance business to LPL Financial. Northwest Financial LLC and Northwest Federal Credit Union are not registered broker/dealers and are not affiliated with LPL Financial. Not NCUA insured. No credit union guarantee. May lose value.

Loan protection and tax preparation services are not affiliated or endorsed by LPL Financial.

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