Roth IRA
Ideal for savers who expect higher income and taxes in retirement.
Overview
What is a Roth IRA?
A Roth IRA is a retirement savings account that allows you to pay taxes on your contributions now and enjoy tax-free withdrawals in retirement. Once your account has been open for at least five years, qualified distributions (including earnings) are entirely tax-free. This makes Roth IRAs an excellent choice for younger savers or anyone expecting to be in a higher tax bracket later in life.
Early, non-qualified withdrawals may be subject to taxes and a 10% IRS penalty.
Member-Focused. Locally Rooted.
Lock In Tax-Free Income for Your Retirement
Pay taxes today and enjoy tax-free withdrawals later. Perfect for long-term savers building future flexibility.
Product Benefits
Built for Tax-Free Growth
After-Tax Contributions
You pay taxes upfront, so your savings and earnings can be withdrawn tax-free later if qualified.
No Required Distributions (RMD)
There’s no RMD for Roth IRAs, so you’re never forced to withdraw funds in retirement.
Tax-Free Withdrawals When Qualified
Withdraw earnings tax-free after five years, as long as you’re 59½ or meet other qualifying criteria.
Ideal for Long-Term Retirement Planners
Best for those expecting higher income in the future and who want more control over when and how they use their savings.
Early, non-qualified withdrawals may be subject to taxes and a 10% IRS penalty.
Want to know more about Roth IRA rules and eligibility?
Learn More About Roth IRA Guidelines on IRS.gov
Frequently Asked Questions
Have Questions? Let Us Help!
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Testimonials
Hear from our members!
Real stories from real people who’ve found their financial home.
I recently moved to Vermont and was looking for a new financial institution. Several people recommended 802 Credit Union. Kim helped me set up my accounts, my direct deposit and got me started with online banking. She showed me how to use Bill Pay, which I never used at my previous bank. What a huge convenience! I highly recommend 802 Credit Union and all the staff at the Windsor branch.
Sarah
Windsor, VT
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