A Roth IRA is an individual retirement account created by the Taxpayer Relief Act of 1997. Roth IRA accounts are traditionally used as retirement savings accounts. They allow limited contributions to be made throughout the tax year and can be withdrawn within 5 years after establishing the account provided you are aged 59 1/2 or older.

More information.

There are limits on the amount of income one can make during a given year—and the limits change from year to year. Please visit the IRS website for details.

The IRS maintains a page that lists the contribution limits for traditional and Roth IRAs.

Both types of IRAs can be maintained at the same time. Contributions may be made to both types of IRAs in the same year. Contributions to both Roth and traditional IRAs cannot exceed the maximum contribution limit for all IRAs.

Those who work for a living can contribute to a Roth IRA account. The income must be derived from actual work efforts and compensation in the form of wages, tips, salaries, bonuses and professional fees.

Yes, you will earn interest on the funds that are on deposit at the credit union in your Roth IRA. View current IRA rates.

No. The amount contributed to your 401(k) or other employer-sponsored plans will not be affected by a Roth IRA.

We recommend that you speak to your plan administrator to find out if your 401K funds are eligible to be rolled into an IRA.