Roth IRA

A retirement plan and determination will take you where you want to go – traveling, golfing, or relaxing by the lake. Whatever you have in mind for your golden years, a Ouachita Valley individual retirement account (IRA) is a safe harbor for your retirement funds. There are now more IRA types and maturity options at Ouachita Valley than ever.

A Roth IRA allows your assets to grow federally tax free. Contributions can be withdrawn at anytime penalty and tax free, subject to credit union penalty. Contributions are not tax-deductible.

Roth IRA Key Features:

  • You may contribute at any age as long as you have earned compensation subject to income limits

  • Federal tax free growth

  • Maximum annual contributions
    2023 – $6,500

  • Catch-up contributions for workers 50+
    2023 – $1,000

  • Contributions are not tax deductible

  • Contributions may be withdrawn at any time without paying taxes or penalty.

  • Earnings may be withdrawn federal tax free if the five year aging requirements and other conditions are met

  • 10 % penalty on earnings withdrawn if you are under 59 1/2 and the withdraw does not qualify as:

    • Qualified higher education expenses

    • Qualified first home purchase (lifetime limit of $10,000)

    • Certain major medical expenses

    • Certain long-term unemployment expenses

    • Disability

    • Substantially equal periodic payments

    • There are no mandatory distributions

Your tax situation may vary. Consult with a tax advisor for full details on deductibility of contributions, earnings, and early withdrawal penalties.