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Roth IRA
A Roth IRA is an individual savings plan that you establish to save for your retirement.

Roth IRA
Roth IRA
A Roth IRA is an individual savings plan that you establish to save for your retirement. A Roth IRA allows only nondeductible contributions, but features tax-free withdrawals for certain distribution reasons after a five-year holding period. The term “tax free” means free from federal income taxes.

Minimum Balance
to Earn Interest
Interest Rate
3 Month IRA CD
6 Month IRA CD
12 Month IRA CD
24 Month IRA CD
36 Month IRA CD
IRA Savings Accounts (Minimum Opening Balance is $25.00)
IRA Savings
Rates are current as of Oct 23, 2016.
Annual Percentage Yield

The minimum balance to open a Roth IRA CD is $1,000. The minimum balance to open a Roth IRA Savings Account is $25. You must maintain the minimum balance indicated in the tables above to earn the disclosed APY. A penalty may be imposed for early withdrawal. The interest rates and APY may change after the account is opened for all interest bearing accounts except CDs. Calculations of the APY assume interest is credited to the account monthly. Fees could reduce earnings on accounts. Refer to the appropriate Fee Schedule and Terms and Conditions.
*The maximum annual contribution to a Roth IRA cannot exceed the limits in the table below.
Maximum Annual Contribution
Tax Year
Under Age 50
Age 50 & Older
A Roth IRA differs from a Traditional IRA in several ways:
You cannot make a Roth IRA contribution if your adjusted gross income (AGI) reaches the following limits:
Roth IRA MAGI Thresholds
Full Contribution
Partial Contribution
No Contribution
$116,000 and $131,000
$117,000 and $132,000
Married, Joint
$183,000 and $193,000
$184,000 and $194,000
Married, Separate
See IRS Publication 590-A for more information on calculating Roth IRA contribution amounts.
Contributions to a Roth IRA are not tax deductible.
After your Roth IRA has been in existence for at least 5 years, the following distributions from the account are tax-free:
  • Distributions made after you turn 59½.
  • Distributions of up to $10,000 (lifetime limit) that are used for the first-time purchase of a home.
  • Distributions made upon your death or disability.
You may contribute to a Roth IRA after age 70½ if you have earned income.
You are not required to take annual distributions from a Roth IRA when you turn 70½.
A Roth IRA might be right for you if:
Your modified adjusted gross income (MAGI) is less than that shown in the table above.
You have earned income and you want to continue to make contributions after age 70½ while working.
You don't want to take mandatory withdrawals after age 70½.
You prefer to have tax-exempt funds available at retirement.
You do not have another IRA or you want to split contributions between a Traditional IRA and a Roth IRA (the combined maximum allowed for the Traditional IRA and a Roth IRA is limited to $5,500 per year, or $6,500 for age 50 and over).
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Tax-exempt retirement income
Contributions to a Roth IRA are not deductible, but withdrawals are generally tax-exempt if:
You don't begin withdrawals until at least five years after you establish the Roth.
You are younger than 59½, but you use the withdrawn funds for a first-home purchase up to $10,000.* In all cases, a Roth IRA must be held for at least five years to qualify for the federal tax exemption.
You become disabled or die.
Withdrawals, penalties and fees for IRAs
Withdrawals of earnings prior to meeting the plan requirements (five years and age 59½ or first-time home purchase or disability or death) may be subject to ordinary income tax and 10% federal additional tax as well as possible state taxes, unless an IRS exemption is allowed.
Bank penalties may apply for withdrawals from time deposits before maturity.
Converting an existing IRA to a Roth IRA
If you already have a Traditional IRA but have determined that the Roth IRA is more advantageous, you can direct future IRA contributions to a Roth IRA and/or convert (roll over) your existing Traditional IRA to a Roth IRA.
Important Note:
Converting a Traditional IRA to a Roth IRA is not a tax-free "rollover." A distribution of funds from a Traditional IRA is a taxable distribution. The decision to convert may depend on a number of factors, including whether you are willing to pay the taxes now in return for potentially receiving more after-tax income when you withdraw funds from the Roth IRA later. The amount of your distribution may be subject to tax penalties, especially if you do not roll over the entire amount of the distribution into a Roth IRA. We suggest you see your tax advisor before making your final decision.

*Withdrawals from IRAs before age 59½ may be subject to a 10% federal additional tax and possible state tax. In addition, withdrawals from Fixed Term and Variable Rate IRAs before the maturity date may also be subject to a bank early withdrawal penalty.

This communication is for information purposes only and is not intended nor should be regarded or construed as legal advice, tax advice, an offer to sell or buy any financial product, an official confirmation of any transaction, or as an official statement of TAB Bank Inc. All information is subject to change without notice. For more information, please consult the IRS website at or your own tax advisor or attorney with regard to your individual situation