Roth IRAs

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As we age gracefully, our priorities change. We hope for good health. We look forward to more family time. And we want enough savings to live comfortably. With a Roth IRA, you can make sizable annual contributions that grow tax-free and help bring about the satisfying future you so richly deserve.

When you open a Roth IRA with Power Financial Credit Union, you get the peace of mind of securing your money for retirement, knowing that it is held with a trusted financial institution that prioritizes your long-term financial health.

Benefits of Power Financial Credit Union Roth IRAs

Tax-Free Withdrawals

Enjoy tax-free withdrawals of Roth IRA earnings and contributions in retirement, provided specific conditions are met.

No Required Minimum Distributions

Roth IRAs have no mandatory withdrawals during your lifetime. You’ll have more control over your retirement income.

Contribution Flexibility

You can make contributions to your Roth IRA at any age. Allowing you greater flexibility for retirement planning.

Estate Planning Advantage

You can pass your Roth IRA down tax-free to your heirs, provided the account has been open for at least five years.

How Do Roth IRA Accounts Work?

Roth Individual Retirement Accounts (IRAs) are a type of retirement savings account that can offer unique advantages over other retirement accounts, such as 401(k)s and Traditional IRAs.

While you cannot deduct contributions on your taxes, you can withdraw earnings and contributions tax-free on qualified distributions if you’re at least 59^1/2 years old and your Roth IRA is at least five years old.

You can make annual contributions of up to $6,500 ($7,5000 if you're age 50 and over)
Earn guaranteed returns on your savings
Funds grow tax-free, and there are no federal taxes on withdrawals
No mandatory withdrawal requirements when you reach a certain age, unlike other retirement accounts
In some instances, you can use your Roth IRA funds for home purchases or higher education costs

Also, with a credit union Roth IRA your funds are secured by the NCUA (National Credit Union Administration) for up to $250,000.

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How to Open a Power Financial Credit Union Roth IRA

Step 1

Open Your Account Online

Simply complete our online application form or visit your nearest to get started with your Roth IRA.

Step 2

Deposit Funds

Make an initial deposit into your Roth IRA Savings Account.

Step 3

Contribute and Earn

Set up regular deposits to reach your annual contribution limits.

Get Started

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FAQs about Roth IRAS

According to the IRS, the following contribution rules apply to Roth IRAs:

Contribution limits for 2023: $6,500, or $7,500 if you’re age 50 or older by the end of the year; or your taxable compensation for the year
Your contributions aren’t deductible
You can withdraw money anytime
You don’t have to take required minimum distributions if if you are the original owner
Withdrawals and distributions are not taxable if it’s a qualified distribution (or a withdrawal that is a qualified distribution)

No, you can contribute to your Roth IRA at any age provided that you meet certain conditions:

You have taxable compensation
Your modified adjusted gross income is within IRS limits.

If you contribute to a Roth IRA and your income exceeds the eligibility limits, you have what’s known as an “excess contribution.” You’ll have to pay a 6% penalty every year until the excess is corrected or absorbed. Contact a tax advisor to understand how this applies to your financial situation.

Roth IRA contributions are made using after-tax dollars, which means you don't get to claim a tax deduction for them like you would with a traditional IRA.

In simpler terms, when it comes to Roth IRAs, you can't lower your taxable income by deducting your contributions.

You can withdraw contributions (not earnings) at any time without penalty. To withdraw earnings without penalty, you need:

A Roth IRA account that’s at least five years old.
You must be at least 59^1/2 years old unless you meet certain exceptions, such as disability or using the withdrawal for a first-time home purchase.

You can pass your Roth IRA to your heirs, allowing them to take distributions throughout their lifetime. Those distributions are typically tax-free.

Yes, you can contribute to a Roth IRA and a 401(k). However, if your income exceeds certain thresholds, there could be limitations on your ability to contribute to your Roth IRA.

You can find our current Roth IRA rates on our account rates page.

You do need to be a member and joining is easy! Simply open a Share Savings Account with a deposit of $5 and you can then open your Roth IRA account.

Our membership consists of those who live, work or go to school in Broward, Charlotte, Collier, Lee, Martin, Miami-Dade, Monroe, Palm Beach County, Hillsborough, Manatee, Pinellas, Sarasota, or St. Lucie counties.

We're also proud to offer membership to our Select Employee Groups. Employees and members of these organizations are always welcome to join, no matter where they live: