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A Smart Way to Save for Retirement

Opening a Roth IRA is a smart way to save for retirement. A Roth IRA lets you grow your retirement savings and enjoy tax-free retirement withdrawals.**


Differences Between a Roth IRA and Traditional IRA

Unlike a 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.

A Roth IRA is more flexible than you think.

If the idea of not being able to use your money until 59 1/2 is holding you back from opening a Roth IRA, you might be surprised to learn that a Roth IRA is more accessible than you realize. You can withdraw your initial contribution to a Roth IRA, but leave all the earnings alone to continue to grow, with no early withdrawal penalty tax ‎or income tax due.‎

Roth IRA Limits and Requirements

  • Maximum contribution: $6,000 in a tax year.
  • Individuals over age 50 may be eligible for an additional $1,000 contribution.

While Roth IRA contributions are not tax-deductible, qualified withdrawals of earnings can be federal income tax-free when certain withdrawal ‎requirements are met.‎

If you are interested in a traditional IRA option, Mutual of Omaha Bank offers several Certificate of Deposit (CD) options for funding traditional IRAs, including fixed rate and variable ‎rate accounts.‎ ‎

**Penalty may be imposed for early withdrawal.