Unlike the Traditional IRA, contributions made to a Roth IRA cannot be deducted for tax purposes. However, growth achieved through investment returns is free from income tax. The maximum annual contribution that can be made to a Roth IRA is $5,000. Individuals over age 50 may be eligible for an additional $1,000 catch-up contribution. While contributions are not tax-deductible, qualified withdrawals of earnings can be federal income tax-free when certain withdrawal requirements are met.
Mutual of Omaha Bank offers several certificate of deposit (CD) options for funding Roth IRAs, including fixed rate and variable rate accounts.
To open an IRA or if you have any questions, please call 866.351.5646 (toll-free).