The First National Bank in Sioux Falls

Roth IRAs

Some people find a roth IRA is the best choice. Roth IRAs offer the following advantages:

• Tax structure - contributions are post-tax, but growth is tax-free. Once you put your money in, following a five-year holding period, you never pay taxes again. Since withdrawals are not reportable income, they won't affect your adjusted gross income during retirement.
• Flexibility - since you have already paid taxes up front, there are no minimum distribution requirements.

Catch-Up

IRA holders who are 50 or older by the end of the year can contribute an amount in excess of their annual contribution into a roth or traditional IRA as follows: